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New Delhi: Balu Forge, backed by Ace investor Ashish Kacholia, has been one of those small-cap stocks on Dalal Street that has given an outstanding return to its shareholders in recent times. This BSE listed stock has rose from around Rs 66.50 to Rs 220 apiece levels, delivering 250 per cent return to its shareholders. The precision engineering major has now informed exchanges that it has finalised the preferential allotment of equity shares.
According to an exchange filing, the company’s board of directors finalised the allotment of 2.5 million (25 lakh) fully paid-up equity shares for cash at a price of Rs. 183.60 per share to non-promoters and non-promoter group entities.
As per the filing, the sixteenth Street Asian Gems Fund, which belongs to the non-promoter category, has been allotted 25 lakh equity shares at an aggregate amount of Rs 45,90,00,000. Sixteenth Street Asian Gems Fund is based out of Singapore.
In addition to it, the board has finalised the allotment of 50,00,000 (50 lakh) fully convertible warrants for cash at an issue price of Rs 183.60 per warrant. It is important to note that these warrants can be converted into an equivalent number of equity shares with a face value of Rs 10 each.
Known as the Big Whale of the stock market, Ashish Kacholia, holds 21,65,500 equity shares of the company or 2.23 per cent stake. As per the latest shareholding pattern as of June 30, 2023. His stake in Balu Forge is worth around Rs 43.5 crore.
Balu Forge shares have delivered a multibagger return of 134 per cent in just six months, as per the BSE website. The stock has rallied more than 200 per cent in the past year. Balu Forge is a constituent of S&P BSE SmallCap index. The company has a market capitalisation of Rs 2,208 crore.
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