Ashish Kacholia portfolio stock: Singapore-based FII buys stake in Balu Forge

Ace investor Ashish Kacholia-backed precision engineering major Balu Forge has informed exchanges that it has finalised the preferential allotment of equity shares.

According to an exchange filing by the company, the board at a meeting finalised the allotment of 25,00,000 (25 lakhs) fully paid up equity shares for cash of Rs 10 each, at a price of Rs 183.60 per share to the persons other than promoters and promoter group.

Sixteenth Street Asian Gems Fund, which belongs to the non-promoter category, has been allotted 25 lakh equity shares at an aggregate amount of Rs 45,90,00,000, according to the filing. Sixteenth Street Asian Gems Fund is based out of Singapore.

Besides, the board has also finalised the allotment of 50,00,000 (50 lakhs) fully convertible warrants for cash at an issue price of Rs 183.60 per warrant convertible into an equivalent number of equity shares having a face value of Rs 10 each.

Convertible warrants are a way for listed companies to raise funds by issuing preferred stocks. A convertible warrant empowers investors with the right to purchase a certain amount of the company's equity shares at a later date at a specified price.

Ashish Kacholia, who is fondly referred to as the Big Whale of the stock market, holds 21,65,500 equity shares of the company or 2.23 per cent stake, according to the latest shareholding pattern as of June 30, 2023. His stake in Balu Forge is worth around Rs 43.5 crore.

As per the BSE website, Balu Forge shares have delivered a multibagger return of 134 per cent in just six months. The stock has rallied more than 200 per cent in the past year. 

Balu Forge is a constituent of S&P BSE SmallCap index. The company has a market capitalisation of Rs 2,208 crore.