Balu Forge Industries Ltd Raises ₹496.80 Crore to Enhance Manufacturing Capacity

On July 16, 2024, Balu Forge Industries Ltd (BFIL), a leading precision engineering and manufacturing company, announced raising ₹496.80 crore. The funds will come from a mix of preferential equity shares and fully convertible warrants. This initiative aims to enhance BFIL’s manufacturing capacity, support India’s self-reliance in the defence, railways, and aerospace sectors, and contribute to the vision of a developed India (Viksit Bharat).

Balu Forge Industries Ltd (BFIL) has announced the board’s approval to issue 45,00,000 equity shares with a face value of ₹10 each at a premium price of ₹350 per share, totalling ₹162 crore. This will be done through a preferential issue to non-promoter public investors. Additionally, the board approved issuing 63,00,000 fully convertible warrants to non-promoter public investors and 30,00,000 fully convertible warrants to promoters at ₹360 per warrant.

Most funds will be used for special research and development projects to improve BFIL’s defence and aerospace components engineering capabilities. The company plans to add a Direct Drive Screw Press Line for producing aerospace and high-precision components and a Special Purpose Machine (SPM) line for defence production. Their product range will include various items for the railways, defence, and aerospace industries.

BFIL partners with several global companies for technology transfers and contract manufacturing, particularly in the defence, railways, and aerospace sectors.

Expansion of Machining Capacity

The company plans to invest in Solid Wheel Rolling Machinery to produce railway wheels up to 1300 mm, making them one of the largest railway wheels in the world. It will also be able to supply complete wheel sets (wheels and axle assemblies) for these large railway wheels. Additionally, BFIL is expanding its machining capacity to become a leading precision machining company in terms of capacity and capability.

About Balu Forge Industries Ltd

Balu Forge Industries Ltd (BFIL) was founded in 1989 and specialises in manufacturing fully finished and semi-finished crankshafts and forged components. It can produce parts that meet new emission regulations and new energy vehicle standards. The company has an extensive global distribution network with over 80 connections and serves both domestic and export markets.

On July 16, 2024, Balu Forge Industries Ltd’s share price opened at ₹416.80, touching the day’s high of ₹427.00 as of 02:35 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.