According to a clause in the family arrangement inked between Baba and his parents on June 19, 1994, Gaurishankar, who owns nearly 3% in Bharat Forge, is required to transfer his stake to his older brother after the demise of their parents. Their father, Neelkanth Kalyani, died in 2013, while their mother, Sulochana Kalyani, passed away on February 25, 2023. The 3% stake in Bharat Forge is worth Rs 1,300 crore.
The clause forms part of the broader family arrangement that also requires Baba to transfer his entire 34% stake in Hikal to his sister, who is the non-executive director of the pharmaceuticals and chemicals company. Baba owns the Hikal stake through the publicly-listed Kalyani Investment and BF Investment.
With Baba denying the existence of such a family arrangement, Gaurishankar’s 3% stake in Bharat Forge has come under the spotlight. Baba may lose this stake in his flagship, which has a market capitalisation of more than Rs 47,567 crore.
In an August 12 stock exchange disclosure, Kalyani Investment and BF Investment said 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. Gaurishankar owns a 2.67% stake in Bharat Forge through 10 privately held companies like Jannhavi Investment, Yusmarg Investment, and Dandakaranya Investment.
Emails sent to Baba and Rohini Kalyani, wife of Gaurishankar, seeking comments didn’t elicit any response till the time of going to press.