Shares of Balu Forge Industries, a precision engineering and manufacturing firm, will be in focus when the market opens on Monday as the company has informed exchanges that it has signed an MoU to expand operations in the defence, aerospace, railways and nuclear industries.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

According to the information shared, a Memorandum of Understanding (MOU) has been signed between Balu Forge and Swan Energy Limited to form a special purpose vehicle (SPV).

The objective of the incorporation of SPV is to engage and explore the potential for supply of products and solutions suitable for the global defence industry, aerospace, railways and nuclear industries, Balu Forge said in a regulatory filing.

"Memorandum of Understanding (MOU) to be entered in between Balu Forge Industries Limited and Swan Energy Limited," the filing said. 

"The formation of an SPV between the Balu Forge Industries Limited and Swan Energy and consequent subscription of equity shares of the Special Purpose Vehicle company (SPV) to be incorporated for the purpose of the proposed business venture".

Balu Forge shares surged nearly 5 per cent on Thursday to end the session at Rs 749.65 while Swan Energy shares settled in the green at Rs 511.20.
 
The shares of Balu Forge have given a multibagger return of 214 per cent in one year and 1110 per cent in two years. The stock of Balu Forge, which has a market cap of Rs 8,204 crore, has a 52-week high of Rs 890 and a 52-week low of Rs 154.55.

Earlier, Balu Forge acquired three forging lines having a combined capacity of producing 72,000 tonnes of heavy forged products annually for an undisclosed amount. The units are located in Karnataka, Balu Forge Industries said in a statement on Wednesday.

BFIL announces the acquisition of three forging lines in a combination of hammers and presses capable of producing 72,000 tonnes per annum of heavy forged products, it said.

With PTI inputs