Bharat Forge Picks 25% Stake In Italian Underwater Drone-Maker Edgelab
Bharat Forge, through Kalyani Strategic Systems Ltd., has committed Rs 22.3 crore to acquire a 25% stake in Edgelab.
Bharat Forge Ltd. on Friday announced an investment of Rs 22.3 crore in Italian underwater drone-maker Edgelab for a 25% stake through a wholly owned subsidiary.
Kalyani Strategic Systems Ltd. signed the agreement with Edgelab S.p.A., Italy, to invest in the capacity of an anchor investor ahead of its proposed initial public offer, according to an exchange filing.
There are no government approvals required in India except for the reporting requirements under the Foreign Exchange Management Act, 1999, as amended, Bharat Forge said.
Edgelab is required to obtain requisite approvals in Italy for its IPO and listing of shares on the Euronext Growth Milan, a multilateral trading facility managed and organised by Borsa Italiana for SMEs.
Edgelab specialises in the design and manufacture of autonomous underwater vehicles for both civilian purposes and defence applications. It has expertise in the designing and manufacturing of high-tech vehicles in the field of marine robotics, with a variety of application areas including scientific research, archaeology, undersea and offshore applications, underwater professionals, and port area control.
Bharat Forge said the investment will lead to manufacturing opportunities and synergies for developing new products for various programs globally, including for India.
The customers of Edgelab are located in Europe and India and are both private entities and institutions, the company said.
In 2023, the company secured a strategic partnership with Larsen & Toubro Ltd. arm L&T Defence to design and produce a large AUV named 'AMOGH' for hydrographic and underwater surveillance and recognition operations.
'AMOGH' used for hydrographic and underwater surveillance and recognition operations. (Photo source: Edgelab)
Besides, the Bharat Forge board approved an investment of Rs 48 crore in its electric vehicle arm, Kalyani Powertrain Ltd. The investment is a part of the use of proceeds from its recent share sale to institutional investors and helps the unit in repayment and prepayment of certain outstanding borrowings.
Bharat Forge raised Rs 1,650 crore last week via a qualified institutional placement of shares, mostly to domestic mutual funds.
Shares closed 0.47% lower at Rs 1,346.5 apiece on the BSE before the announcement, compared to a 1% advance in the benchmark Sensex.
