Up 300% in a year! This Ashish Kacholia stock in focus as firm allots preferential shares

Balu Forge Industries has announced the allotment of preferential shares and warrants to its promoters and non-promoter entities. The selected entities have paid the required consideration, after which the securities have been allotted by Balu Forge, said the company in an exchange filing.

The company has allotted 25,00,000 equity shares to the non-promoter entity, Sixteenth Street Asian Gems Fund, at a price of Rs 183.60 per share for a total consideration of Rs 45.90 crore, it said in the exchange filing with the bourses.

The company also allotted 50 lakh fully convertible warrants to Jaikaran Jaspalsingh Chandock and Trimaan Jaspalsingh Chandock, the promoters of the company at an issue price of Rs 183.60 apiece amounting to Rs 22.95 crore. Each warrant is convertible into one equity share.

Following the update, shares of Balu Forge Industries dropped about 9 per cent on Monday to Rs 200.95, before recovering to Rs 217.50, with a total market capitalization of more than Rs 2,100 crore. The stock was settled at Rs 220.65 in the previous trading session Monday.

Shares of Balu Forge Industries have delivered a return of more than 300 per cent in the last one year. The stock has surged about 225 per cent in the year 2023 so far, while it rose 125 per cent in the last six months period. However, it is flat in the last one-month period.

The company had received the approval from its shareholders for allotment of securities in the annual general meeting (AGM) held on September 27, 2023. The company had also received in-principal approval from BSE, for the given allotment and the company board gave its nod on Friday, October 6 in its meeting.

Dalal Street veteran Ashish Rameshchandra Kacholia owned 21,65,600 crore shares or 2.16 per cent stake in the company worth close to Rs 46 crore as of September 4, 2023. The company is yet to file the shareholding pattern for the current quarter. Balu Forge is a manufacturer of forged crankshafts and other forged components.

Also read: Hero MotoCorp shares tank 4% as Delhi Police files FIR against Pawan Munjal

Also read: TCS, Infosys, HCL Technologies to announce Q2 results this week; here’s what you can expect