Ashish Kacholia-backed Balu Forge shares trade near 52-week high as board approves warrants

Shares of precision engineering major Balu Forge on Wednesday gained in early morning deals. The stock opened at Rs 223, up over 1 per cent from the previous close of Rs 220.35 and hit an intraday high of Rs 225.70, up over 2 per cent. It, however, slipped into the red as profit booking dragged the counter.

The stock has fallen after three days of consecutive gains. At the current market price of Rs 214, the scrip is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. At the time of filing this report, nearly 2.94 lakh shares of the company changed hands at an average traded price of Rs 216.76.

Earlier on Tuesday, the scrip had hit a fresh 52-week high of Rs 228.70 after the board approved the allotment of equity shares and warrants on a preferential basis, according to the BSE website.

Ace investor Ashish Kacholia owns 21,65,500 equity shares of the company or 2.23 per cent stake in the company, according to the latest shareholding pattern as of June 30, 2023. His stake in the company is worth around Rs 43.5 crore.

Meanwhile, the company in an exchange filing informed that the board has approved the allotment of over 30 lakh equity shares having a face value of Rs 10 each at an issue price of Rs 115.45 upon exercising the option available with the warrant holders to convert warrants into equity shares.

It added that promoter group entities -- Trimaan Jaspalsingh Chandock and Jaikaran Jaspalsingh Chandock have cumulatively converted their warrants into equity shares in a 1:1 ratio as prescribed at the time of issuance, after the payment of the remaining amount.

Meanwhile, the board has also approved the allotment of 50 lakh fully convertible warrants at an issue price of Rs 183.60 each to the promoter group entities. This amounts to Rs 91.80 crore.

Each warrant can be converted into one equity share within 18 months from the date of allotment, the filing said. Besides, the firm has also approved the issuance of 25 lakh equity shares on a preferential basis to Singapore-based Sixteenth Street Asian Gems Fund at an issue price of Rs 183.60 each, amounting to Rs 45.90 crore.

Balu Forge shares have delivered multibagger return of 148 per cent in the last six months, according to BSE data. The stock has zoomed a massive 284 per cent in the past one year.

Balu Forge Industries is one of the leading manufacturers of finished and semi-finished forged crankshafts and components.