Ashish Kacholia gains Rs 4,19,02,425 in just 1 day: This multibagger forging stock hit 52-week high as the company is likely to raise funds!

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 12.16 per cent.

On Tuesday, the indices were trading in green. The BSE Sensex Index is up by 0.20 per cent at a level of 65,123.66. As of August 29, 2023, the market capitalisation of BSE-listed companies amounts to Rs 3,09,14,278.1 crore, accompanied by 200 stocks hitting a 52-week high and 25 stocks reaching a 52-week low. 

Along with the market reacting positively today, shares of this multibagger forging company gained 10.65 per cent to make a new 52-week high of Rs 201 per share from its previous closing of Rs 181.65 per share.

The sudden rise in the stock price today is due to the company announcing that a meeting of the Board of Directors is scheduled to be held on Monday, September 04, 2023, through Video Conferencing (VC) / Other Audio-Visual Means (OAVM), to consider and approve the proposal for fundraising by way of preferential issue / private placement of convertible securities to the promoter and promoter group category of investor, including determination of issue price subject to such regulatory/statutory approvals as may be required, including the approval of shareholders of the company and other re-appointment of members.

Earlier, Ashish Kacholia, an ace investor bought 21,65,500 shares or a 2.16 per cent stake in this company via preferential issue of shares at an issue price of Rs 115.45 per share. Yesterday, the stock closed at Rs 181.65 per share. Today, it hit an intraday high of Rs 201 per share. This means that the investor made a profit of Rs 4,19,02,425 or Rs 4.19 crore in just one day.

The investor bought the stock at the issue price, which was lower than the current price. This means that they have already made a profit of approximately Rs 18.53 crore since they bought the stock.

The forging stock that has gained significant momentum and is generating excitement is none other than BALU FORGE INDUSTRIES LTD.

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

According to the Quarterly Results, Revenue from Operations increased by 112.86 per cent and stood at Rs 112.38 crore, EBITDA increased by 180.41 per cent to Rs 21.90 crore and PAT increased by 125.35 per cent to Rs 16.67 crore in Q1FY24 compared to Q1FY23. This Small-Cap company has a market cap of over Rs 1,900 crore and reported positive numbers in its annual results.

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 12.16 per cent. Will Ashish Kacholia participate again in the preferential issue, just as he did the last time?

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