Ashish Kacholia’s portfolio multibagger stock: Board allots 25,00,000 equity shares to FII, Sixteenth Street Asian Gems Fund!

The stock gave multibagger returns of 220 per cent in just 1 year whereas BSE Sensex Index is up by 13.35 per cent

Balu Forge Industries Ltd informed that the Board of Directors of company has allocated 25,00,000 fully paid-up equity shares for cash of Rs 10 each, at a price of Rs 183.60 aggregating to Rs 45.90 crore to a Foreign Institutional Investor (FII), Sixteenth Street Asian Gems Fund.

Additionally, the Board has allocated 50,00,000 fully convertible warrants aggregating to Rs 22.95 crore to the promoters of the company (Jaikaran Jaspalsingh Chandock & Trimaan Jaspalsingh Chandock)

Furthermore, 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 aggregating to Rs 25,00,06,975 in July 2023.  From Rs 115.45 per share to Rs 220.65 per share, he already made gains of 91.12 per cent or Rs 22,78,10,600 since they bought the stock in July 2023.

On Friday, shares of Balu Forge Industries Ltd ended the trading session green, up 0.89 per cent to Rs 220.65 per share with an intraday high of Rs 223 and an intraday low of Rs 218. The stock’s 52-week high is Rs 230.90 and its 52-week low is Rs 53.9.

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

The company has a market capitalization of over Rs 2,200 crore and reported positive numbers in its Quarterly Results (Q1FY24) and annual results (FY23). The shares of the company have an ROE of 21.9 per cent and an ROCE of 26.9 per cent.

The stock gave multibagger returns of 220 per cent in just 1 year whereas BSE Sensex Index is up by 13.35 per cent. Investors should keep an eye on this Small-Cap stock.

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