Balu Forge shares hit 52-week high; Ashish Kacholia picks stake in the multibagger stock

Shares of Balu Forge Industries hit a 52-week high during the trading session Wednesday, before taking a U-turn after the company announced issuance of preference shares. The company was informed about the decision taken by the board through an exchange filing.

The company board approved issuance of up to 1,37,27,000 each on a preferential basis to the persons other than promoters and promoter group at an issue price of Rs 115.45 apiece. Seasoned Dalal street investor Ashish Kacholia picked up 21,65,500 equity shares, or 2.16 per cent stake, in the company via preference issue.

The company board also approved issuance of up to 30,00,014 fully convertible warrants on a preferential basis to the persons forming part of the promoter group at an issue price of Rs 115.45 apiece. Each of these warrants could be converted into one-share equity shares of the company. However, both decisions are subject to the approval of shareholders.

Shares of Balu Forge surged 7 per cent to Rs 168.90 on Wednesday, hitting its new 52-week high. However, the stock dropped about 11 per cent from day's high and finally settled at Rs 151 as the session concluded. The company was commanding a total market capitalization of more than Rs 1,250 crore.

Shares of Balu Forge have delivered a stellar return of 225 per cent from its 52-week low at Rs 52 in August 2022. The stock has surged more than 100 per cent in the year 2023 so far, while it is up 50 per cent in the last one month.

Balu Forge Industries' consolidated net profit increased 30 per cent to Rs 38.91 crore for the year ended on March 31, 2023, which was Rs 29.84 crore in the year ago period. Its revenue from operations increased over 14 per cent to Rs 326.64 crore during the period under review.

Incorporated in 1989, Balu Forge Industries is engaged in the manufacturing of fully finished and semi-finished crankshafts and forged components. It has the capability to manufacture components conforming to both new emission regulations and the new energy vehicles.