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Bharat Forge to Invest Rs 240 Crore in Defence Arm for New Ammunition Facility
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CNBC TV18•16-10-2026, 18:33
Bharat Forge to Invest Rs 240 Crore in Defence Arm for New Ammunition Facility
- •Bharat Forge will invest Rs 240 crore in its defense subsidiary Kalyani Strategic Systems Ltd through a rights issue.
- •Kalyani Strategic Systems Ltd will invest up to Rs 163 crore in Agneyastra Energetics Ltd to establish an ammunition shell filling facility.
- •The new facility will specialize in pour filling, a process used to fill ammunition shells with explosive materials.
- •The investment is funded through qualified institutional placement proceeds and internal accruals to expand defence manufacturing capabilities.
Key Questions Answered
Bharat Forge is investing ₹240 crore in its wholly owned defence subsidiary, Kalyani Strategic Systems Ltd (KSSL), through a rights issue at fair value approved by its board on August 10, 2026, funded via qualified institutional placement and internal accruals.
Agneyastra Energetics Ltd (AEL) will use up to ₹163 crore invested by KSSL to set up a specialized facility focused on pour filling, a process used to fill ammunition shells with explosive material.
According to the regulatory filing, Agneyastra Energetics Ltd (AEL) reported no turnover in FY26.
