Bharat Forge launches $150 million private placement issue

22 Apr 2010

Auto components maker Bharat Forge today said it has launched its $150 million (about Rs720 crore) private placement issue on 21 April.

In a filing to the National Stock Exchange (NSE), Bharat Forge said the company had opened its $150 million qualified institutional placement issue at its meeting held yesterday.

The company did not, however, disclose the purpose for which it was seeking to raise the funds.

The company stated yesterday, that it had redeemed foreign currency convertible bonds (FCCBs) worth $131 million. In 2005, Bharat Forge had issued FCCBs aggregating $120 million. The FCCBs carried an option for conversion into GDRs/equity shares.

The funds were raised mainly for financing capital expenditure and global acquisitions and of the $120 million, FCCBs worth $17.75 million were converted in GDRs/equity shares during the tenure of FCCBs.

Bharat Forge, the flagship company of the Kalyani group is a leading global forged and machined engine and chassis components maker.