Ashish Kacholia-backed stock hit new 52-week high as board approves warrants, shares

Shares of Balu Forge Industries rose sharply during the early trading session on Tuesday to hit new 52-week highs as the company allots equity shares and warrants on a preferential basis to promoters, promoter group entities and other investors. The company informs about the same through an exchange filing on Monday.

The company has allotted 30,00,014 equity shares with a face value of Rs 10 each at an issue price of Rs 115.45 per shares  fully paid up upon exercising the option available with the share warrant holder to convert 30,00,014 convertible warrants. The allotment has been made for cash, upon the receipt of the remaining exercise price aggregating to Rs 25.97 crore, the company said.

Trimaan Jaspalsingh Chandock and Jaikaran Jaspalsingh Chandock, the promoter group entities, have cumulatively converted their more than 30 lakh warrants into equity shares in 1:1 ratio as prescribed at the time of issue, after the payment of remaining amount.

Other than this, the company board also approved allotment of 50 lakh fully convertible warrants at an issue price of Rs 183.60 each, amounting to Rs 91.80 crore to the above mentioned entities. Each warrant can be converted into one equity share within a period of 18 months from the date of allotment after the full payment of the same.

The company board of Balu Forge Industries also approved issuance of 25 lakh equity shares on a preferential basis at an issue price of Rs 183.60 each amounting to Rs 45.90 crore to Singapore-based Sixteenth Street Asian Gems Fund, the filing added further.

Following the announcement, shares of Balu Forge Industries gained about 5 per cent to Rs 228.70 on Tuesday, hitting its new 52-week highs, and commanding a total market capitalization of more than Rs 2,200 crore. The stock had settled at Rs 218.35 on Monday.

Shares of Balu Forge Industries have surged about 330 per cent from its 52-week low at Rs 53 hit a year ago. The stock has surged about 235 per cent in the year 2023 so far, while has zoomed about 900 per cent from its Covid-19 lows.

Balu Forge Industries' consolidated net profit jumped about 35 per cent to Rs 10.31 crore for the quarter ended on June 30, 2023, which was Rs 7.66 crore in the year ago period. Its revenue from operations increased about 15 per cent to Rs 69.63 crore during the period under review.

Seasoned investors Ashish Kacholia owned 21,65,500 equity shares, or 2.23 per cent stake, in Balu Forge Industries as of June 30, 2023, the latest shareholding pattern of the company showed. His stake in the company is worth around Rs 43.5 crore.

Incorporated in 1989, Balu Forge Industries is engaged in the manufacturing of fully finished and semi-finished crankshafts and forged components. It has the capability to manufacture components conforming to both new emission regulations and the new energy vehicles.

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