Pune-based Bharat Forge Ltd has announced that its wholly-owned subsidiary, Kalyani Strategic Systems Ltd (KSSL), will invest €2.5 million to acquire a 25% equity stake in Italy’s Edgelab SpA. This strategic investment was formalized on December 13, 2024, through a cornerstone investment agreement linked to Edgelab’s upcoming initial public offering (IPO).
Edgelab, established in 2010 and headquartered in La Spezia, Italy, specializes in designing and manufacturing high-tech vehicles, particularly in the marine robotics sector. The company is known for its autonomous underwater vehicles (AUVs) used in various applications, including scientific research, marine archaeology, offshore operations, professional underwater services, and port security.
The acquisition of this stake signifies Bharat Forge’s interest in expanding its technological capabilities into marine robotics, aligning with its broader strategy to diversify into high-tech defense and aerospace solutions. Edgelab’s revenue for the fiscal year ending December 2023 was reported at €1.89 million, indicating a consistent growth trajectory over the past few years.
This move not only strengthens Bharat Forge’s global footprint but also positions it at the forefront of innovation in marine technology. The synergy between Bharat Forge’s manufacturing expertise and Edgelab’s specialized technology could lead to new product developments tailored for both the Indian and international markets.
The acquisition is subject to standard conditions outlined in the agreement and does not require additional governmental approvals in India, aside from compliance with the Foreign Exchange Management Act (FEMA).
Bharat Forge’s shares saw a slight dip, closing at ₹1,346.50, down by ₹6.35 or 0.47% on the BSE on the day of the announcement. This investment is viewed as a strategic step to bolster Bharat Forge’s technological portfolio, with potential applications in both civilian and defense sectors.