Auto components major Bharat Forge on Tuesday said its arm Kalyani Powertrain Ltd has hiked stake in electric two-wheeler maker Tork Motors to 60.66 per cent through conversion of debentures into equity shares.
Earlier this year, Bharat Forge had announced plans to house all of its electric vehicle (EV) business initiatives under Kalyani Powertrain Ltd (KPL), a wholly-owned subsidiary. On September 4, it had transferred its 48.86 per cent stake in Tork Motors Pvt Ltd to KPL. “Further, KPL also exercised the option to convert its holding of zero coupon optionally convertible debentures (ZOCD) of Tork into equity shares by serving a conversion notice, pursuant to the terms of the said ZOCD,” Bharat Forge said in a regulatory filing.
The conversion of 4 lakh ZOCD of face value of Rs 1,000 each amounted to Rs 40 crore, it added. Post allotment of equity shares by Tork to KPL on November 22 and owing to the said conversion, the stake of KPL in Tork has increased to 60.66 per cent, it added. “Consequently, Tork has become a subsidiary of KPL and a step-down subsidiary of the company,” the filing said. Tork had a turnover of Rs 4.3 crore in 2020-21.