Balu Forge Industries Limited to raise funds of Rs. 496.80 Crores

Balu Forge Industries Ltd. (BFIL), a leading precision engineering and manufacturing company, has announced a fund-raise of Rs. 496.80 Crores in a combination of preferential issue of equity shares and fully convertible warrants to strengthen its manufacturing capacity and capability to play its role in making India atmanirbhar or self-reliant in defence, railways and aerospace sector and turning the vision of Viksit Bharat into reality.

The board of BFIL has approved an issue of 45,00,000 equity shares of face value of Rs. 10 each at a premium price of Rs. 350 per equity share aggregating up to Rs. 162,00,00,000 by way of preferential issue to the nonpromoter public category investors. The board has also approved an issue of 63,00,000 fully convertible warrants to the non-promoter public category investors and 30,00,000 fully convertible warrants to the promoter category at an issue price of Rs.360 per warrant.

BFIL will majorly deploy a majority of the funds to undertake special R&D initiatives to further enhance the special engineering capability in the field of defence and aerospace components. The company will further add a new capability in the form of a Direct Drive Screw Press Line capable of producing aerospace and high precision components and SPM line for defence production. The product mix includes an extensive large portfolio covering railways, defence and aerospace industries.

Commenting on the fund-raise, Mr. Trimaan Chandock, Whole-Time Director, Balu Forge Industries Ltd. said, "The fund-raise is a part of our strategy to further diversify our manufacturing capacity to usher in the next phase of growth. Our efforts are in line with the government's mission to promote indigenous manufacturing in defence, aerospace and railways through Make in India. Our continued focus will be on building a robust and progressive manufacturing framework to drive sustainable value for our stakeholders and to build capacity and boost self-reliance in defence, railways and aerospace manufacturing. We are aligning our resources and strategic vision in sync with the Viksit Bharat - Prime Minister Shri Narendra Modi's vision for a developed India."

BFIL is actively engaging with a number of companies globally for Transfer of Technology (ToT) and contract manufacturing agreements especially in the space of defence, railways and aerospace.

The company has plans to deploy capital to procure Solid Wheel Rolling Machinery which will help the company to produce railway wheel up to 1300 mm, one of the largest railway wheels globally. The company will be capable to supply wheel-sets (wheels and axle assembly) for 1300 mm dia railways wheels.

BFIL is working towards further enhancing its machining capacity to position itself as a leading precision machining player in the industry in terms of capacity and capability.

Shares of Balu Forge Industries Ltd was last trading in BSE at Rs. 409.15 as compared to the previous close of Rs. 415.30. The total number of shares traded during the day was 256962 in over 5244 trades.

The stock hit an intraday high of Rs. 426.65 and intraday low of 406.40. The net turnover during the day was Rs. 107046643.00.

Source : Equity Bulls

Keywords

BaluForgeIndustries INE011E01029 BFIL FundRaising PreferentialIssue