Kalyani Powertrain Ltd (KPL), a subsidiary of Bharat Forge, said that its investment in electric two-wheeler producer Tork Motors increased to 60.66 per cent through the conversion of debentures into equity shares.
Tork allotted equity shares to KPL on November 22, and as a result of the conversion, KPL’s holding in Tork climbed to 60.66%, Bharat Forge said.
As of September 24, Bharat Forge transferred its 48.86% share in Tork Motors Pvt Ltd. to KPL, Kalyani Powertrain Ltd, and is also planning to consolidate all of its electric vehicle business activities under KPL.
“Consequently, Tork has become a subsidiary of KPL and a step-down subsidiary of the firm,” according to the regulatory filing.
Bharat Forge also claimed in the filing that KPL exercised its option to convert its ownership of Tork’s zero coupon optionally convertible debentures (ZOCD) into equity shares by providing a conversion notice in compliance with the ZOCD’s conditions.
The firm claimed that the conversion of 4 lakh ZOCD with face values of Rs 1,000 apiece amounted to Rs 40 crore, while Tork’s revenue in 2020-21 was Rs 4.3 crore.