Ashish Kacholia Stock Rally 10% To Hit 52W High On Fundraising Plan

Balu Forge Industries Ltd is a small cap company dealing in the capital goods sector. The stock opened today on the BSE at Rs 187 apiece and rallied over 10% to hit a fresh 52-week-high of Rs 201 during the afternoon deals. The strong surge in stock price was witnessed after the company announced that it is all set to consider a fundraising plan.

The company announced that the Board of Directors of our Company is scheduled to be held on Monday, 4th September, 2023 to re-appointment of Mr. Jaspalsingh Chandock, as Chairman and Managing Director, subject to approval of shareholders, to re-appointment of Mr. Trimaan Jaspalsingh Chandock, as whole-time director, subject to approval of shareholders; and to re-appointment of Mr. Jaikaran Jaspalsingh Chandock, as whole-time director.

Balu Forge Industries said that in the Board meeting, it will consider and approve the proposal for fund raising by way of preferential issue / private placement of convertible securities to the Promoter and Promoter Group Category of Investor, including determination of Issue Price subject to such regulatory/statutory approvals as may be required, including the approval of shareholders of the company.

In the first quarter of FY24, the company's revenue from operations jumped by 112.86%, from Rs. 527.97 million in Q1FY23 to Rs. 1,123.85 million, according to a BSE report. Its EBITDA jumped from Rs 78.13 Mn in Q1 FY23 to Rs 218.97 Mn in Q1 FY24, with margins expanding from 14.80% to 19.48%. From Rs 73.97 Mn in the first quarter of FY23 to Rs 166.70 Mn in the first quarter of FY24, PAT rose by 125.35%, and the PAT margin went up from 14.01% to 14.83%. In order to grow operations through capacity expansion, Balu Forge Industries hired Mr. Amit Todkari as its chief financial officer during the quarter and raised Rs. 193 crores through the preferential sale of equity shares and warrants.

During Q1FY24, the company reported promoters shareholding of 56.16%, FIIs stake of 7.60% and public stake of 36.24%. During the April to June 2023 quarter ace investor Ashish Rameshchandra Kacholia held 21,65,500 shares which is 2.23% of the total paid-up capital of the company.