Kalyani-Hiremath legal battle sees new twist; Kalyani's brother could lead to Baba losing Rs 1300 crore worth stake
Bharat Forge CMD Baba Kalyani and his sister Sugandha Hiremath's legal battle for Hikal observes a new twist, another aspect of the family agreement which includes CMD's younger brother Gaurishankar could turn things around for Kalyani, reported TOI.
As per a clause of the family agreement between Baba and his parents on June 19, 1994, Gaurishankar, who owns nearly 3 per cent of Bharat Forge, is required to transfer his stake to his older brother after their parents passed away.
Neelkanth Kalyani, died in 2013, while their mother, Sulochana Kalyani, passed away on February 25, 2023.
Gaurishankar owns a 2.67 per cent stake in Bharat Forge through 10 privately held companies like Jannhavi Investment, Yusmarg Investment, and Dandakaranya Investment.
However, if 3 per cent of the stake is transferred to Baba as per the family agreement that is worth Rs 1,300 crore and market capitalisation of more than Rs 47,567 crore, then he will also have to lose 34 per cent stake in Hikal to his sister.
Over the course of the legal battle between the family members, the billionaire has been denying the existence of the family agreement by claiming that it cannot be sustainable before the law.
Kalyani Investment and BF Investment through an exchange filing said that the Hikal shares they hold “are not the subject matter of any family arrangement as alleged."
“We gather from the written statement submitted by Baba Kalyani with the Bombay HC in relation to the suit filed by Sugandha Hiremath that he has denied the existence of the so-called family agreement.”
The two firms said the suit is pending and accordingly, the existence of the purported family arrangement is a matter which is sub-judice.
