Ashish Kacholia Buys Stake In Balu Forge, Scrip Up Hit 52-Week-High

Balu Forge shares hit a 52-week high after the company announces the issuance of equity shares on a preferential basis
The board of industrial products company Balu Forge has approved increasing the authorised share capital of the company from the existing Rs 90 crore to Rs 110 crore. According to an exchange filing by the company, it will issue up to 1,37,27,000 equity shares of Rs 10 each on a preferential basis (Preferential Issue), subject to shareholders' approval, to persons other than promoters and promoter group.

Ashish Kacholia, an ace investor, participated in the preferential issue of shares. He acquired 21,65,500 shares, which represents 2.16 per cent of the total shares issued. In addition to Ashish Kacholia, there were 13 other new companies or individuals who participated in the preferential issue.

The company added that it will issue up to 30,00,014 fully convertible warrants into equity shares on a preferential basis to the persons forming part of the promoter group, in accordance with Chapter V of the SEBI.

The company has convened an Extra-Ordinary General Meeting on Friday, July 14 to seek shareholders' approval for the above-mentioned matters.

The filing added that as the proposed preferential issue size exceeds Rs 100 core, the board is in the process of appointing a monitoring agency in pursuant to Regulation 162A of SEBI.

Meanwhile, Balu Forge shares on Wednesday high a new 52-week high of Rs 168.90 on BSE. It, however, erased all gains to conclude the session in negative territory. The small-cap company has a market capitalization of more than Rs 1,250 crore.

Shares of Balu Forge have delivered a stellar return of 134 per cent in the past six months. The company's consolidated net profit in Q4 of FY23 jumped 30 per cent to Rs 38.91 crore while its revenue from operations increased over 14 per cent to Rs 326.64 crore.
Balu Forge was incorporated in 1989. It is engaged in the manufacturing of fully finished and semi-finished crankshafts and forged components.