The funds will be used to operationalise AEL and enable it to establish a state-of-the-art facility for pour filling of ammunition shells. Incorporated on July 2, 2025, AEL is engaged in developing end-to-end defence energetics capabilities, including the manufacturing of high-energy explosives, high-explosive filling for heavy- and medium-calibre ammunition, gun propellants and rocket propellants.

The proposed investment will be made through a rights issue of equity shares at fair value in one or more tranches. The investment is expected to be completed on or before September 30, 2027. KSSL will continue to hold 100% of the shareholding in AEL following the investment.

Separately, Bharat Forge has invested Rs 240 crore in KSSL through a rights issue of equity shares at fair value. The investment was funded through proceeds from the company's qualified institutional placement (QIP) and internal accruals. The allotment of shares by KSSL against the investment is scheduled to be completed on or before October 31, 2026.

Pune-based Bharat Forge is a technology-driven global leader in providing high-performance, innovative safety-critical components and solutions for several sectors, including automotive, power, oil and gas, construction & mining, rail, marine, defense, and aerospace. The company has a global manufacturing footprint with a presence across five countries.

The company’s consolidated net profit declined 57.59% to Rs 120.32 crore in Q1 FY27 compared with Rs 283.68 crore in Q1 FY26. Net sales jumped 18.71% YoY to Rs 4639.94 crore in the quarter ended 30 June 2026.

The counter rose 0.05% to end at Rs 1,851.95 on the BSE.