Balu Forge Industries has announced a significant expansion of its capital structure, approving an increase in authorized share capital from ₹1,250 crore to ₹1,320 crore. Concurrently, the company resolved to raise approximately ₹1,620 crore through the preferential issue of up to 30,00,000 warrants, convertible into equity shares. These warrants will be issued to the promoters at an issue price of ₹540/- per warrant, indicating strong confidence in future growth and capital requirements.
Capital Expansion and Fundraising
The Board of Directors of Balu Forge Industries Limited, in its meeting held on November 14, 2026, approved a series of strategic financial decisions aimed at future expansion. A key resolution was the increase in the company’s authorized share capital from ₹1,25,00,00,000 (Rupees One Hundred and Twenty-Five Crore Only), divided into 12,50,00,000 equity shares of ₹10 each, to ₹1,32,00,00,000 (Rupees One Hundred and Thirty-Two Crore Only), by creating an additional 70,00,000 equity shares of ₹10 each. This move requires a consequential alteration of the Memorandum of Association, subject to shareholder approval.
Preferential Issue of Warrants
In a significant move to strengthen its financial base, the Board also approved raising funds by way of a preferential issue of up to 30,00,000 (Thirty Lakh) Warrants. Each warrant is convertible into one fully paid-up Equity Share of face value ₹10, at an issue price of ₹540/- (Rupees Five Hundred and Forty Only) per warrant. This issue, aggregating up to approximately ₹1,62,00,00,000 (Rupees One Hundred and Sixty-Two Crore Only), is proposed to be issued to the Promoters on a preferential basis. The issue price is determined in accordance with SEBI regulations and is not less than the floor price.
Financial Results and Other Approvals
The Board also considered and approved the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026, along with the Statement of Assets and Liabilities and Cash Flow Statement. These results were reviewed and recommended by the Audit Committee. Additionally, the Board approved the convening of an Extra-Ordinary General Meeting (EOGM) on December 12, 2026, to seek shareholder approval for these proposals.
Source: BSE
