Balu Forge Industries, a forging and machining company, has announced preferential issue. The company has informed exchanges that its board has decided to increase authorised share capital from Rs 90 crore to Rs 110 crore following which the stock hit a new 52-week high of Rs 168.90 on BSE on Wednesday.
It will issue up to 1.37 crore equity shares of Rs 10 nominal value each on preferential basis to the persons other than promoters and promoter group, it said in an exchange filing. Apart from this, it will issue up to 30 lakh fully convertible warrants into equity shares on preferential basis, the filing added. The issuance is, however, subject to approval of shareholders.
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According to a PTI report, the company saw its standalone net profit jump to Rs 10.90 crore for the March quarter, boosted by higher income. The company had reported standalone net profit of Rs 4.78 crore in the year-ago period, the maker of finished and semi-finished forged crankshafts and forged components said in a regulatory filing.
Its standalone income during the January-March period also increased to Rs 87.49 crore, from Rs 48.57 crore a year ago.
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“We have surpassed our growth expectations despite uncertain global environment,” Jaspal Singh Chandock, company’s Chairman and Managing Director, said in a statement, PTI reported.
The company’s key growth drivers were orders from the defence industry, railways in a middle eastern country and the robust growth in the agricultural demand of Africa, Chandock added.
Mumbai-based BFIL is also in the process of commissioning a precision machining line of the Mercedes Benz Truck Factory which was recently acquired from Mannheim, Germany. Crankshafts find applications in sectors like marine and industrial, agricultural and automotive.
