Board allots 25,00,000 equity shares to FII, Sixteenth Street Asian Gems Fund!

The stock gave multibagger returns of 220 per cent in just 1 year while the BSE Sensex index is up 13.35 per cent.

Balu Forge Industries Limited The company’s board of directors was reported to have allotted 25,00,000 fully paid equity shares for Rs 10 each at a price of Rs 183.60 each to a foreign institutional investor (FII), aggregating to Rs 45.90 crore. Sixteenth Street Asian Gems Fund.

Additionally, the Board has allotted 50,00,000 fully convertible warrants worth Rs 22.95 crore to the promoters of the company (Jaikaran Jaspalsingh Chandhok and Trimaan Jaspalsingh Chandhok).

Ahead, Ashish KacholiaA key investor bought 21,65,500 shares or 2.16 per cent stake in this company through preferential issue of shares at the issue price of Rs 115.45 per share, aggregating to Rs 25,00,06,975 in July 2023. Since buying the stock in July 2023 at Rs 220.65 per share, he has already made a profit of 91.12 per cent or Rs 22,78,10,600.

On Friday, shares of Balu Forge Industries Ltd ended the trading session in the green, rising 0.89 per cent to Rs 220.65 per share, with an intraday high of Rs 223 and intraday low of Rs 218. The stock’s 52-week high is Rs 230.90 and its 52-week low is Rs 53.9.

Balu Forge Industries Limited is engaged in manufacturing of fully drawn and semi-finished forged crankshafts and forged components. It has the capability to manufacture components compliant with new emission regulations and new energy vehicles

The company has a market capitalization of over Rs 2,200 crore and has recorded positive figures quarterly results (Q1FY24) and Annual Results (FY23). ROE of the company’s shares is 21.9 percent and ROCE is 26.9 percent.

Stock gave multibagger 220% return in just 1 year while BSE Sensex index is up 13.35%. Investors should keep an eye on this small hat store.

Disclaimer: This article is for informational purposes only and not investment advice.

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