Bharat Forge tanks after stake sale in KSSL

Shares of Bharat Forge slipped 2.60 per cent in Thursday's trade after reports that the company sold 49 per cent stake in its defence arm Kalyani Strategic Systems (KSSL) to the promoter group. KSSL is the entity, which was supposed to bid and execute various defence projects.

Analysts said it would be a lost opportunity for the company to fully tap the defence business.

CLSA said in note to clients that the stake sale was a surprise for the market. "KSSL has made no P&L contribution so far, but hopes have been rising that the defence opportunity would fructify in the coming years," it said.

The stock was trading at Rs 726, down Rs 20, at 10.30 hours.