Balu Forge Industries Limited’s Board of Directors has approved a significant increase in the company’s authorized share capital from ₹1,250 crore to ₹1,320 crore. Concurrently, the company will raise up to ₹1,620 crore through a preferential issue of 30,00,000 warrants to its promoters. Each warrant is convertible into one equity share at an issue price of ₹540 per warrant, subject to shareholder and stock exchange approvals.
Board Approves Share Capital Enhancement
At its meeting on November 14, 2026, the Board of Directors of Balu Forge Industries Limited sanctioned a proposal to increase the company’s authorized share capital. The authorized capital will be raised from the existing ₹1,250 crore (comprising 12,50,00,000 equity shares of ₹10 each) to ₹1,320 crore (comprising 13,20,00,000 equity shares of ₹10 each). This increase will be achieved through the creation of an additional 70,00,000 equity shares of ₹10 each.
Preferential Issue of Warrants
In a move to bolster its financial resources, the company also approved raising funds via a preferential issue of up to 30,00,000 (Thirty Lakh) Warrants. These warrants are fully convertible into equity shares at a price of ₹540 per warrant, which includes a premium of ₹530. The total amount to be raised from this issue, assuming full subscription, is approximately ₹1,62,00,00,000 (Rupees One Hundred and Sixty-Two Crore Only). The issue is proposed to be made to the Promoters of the Company on a preferential basis.
Key Approvals Required
Both the increase in authorized share capital and the preferential issue of warrants are subject to the approval of the Company’s shareholders and in-principle approval from the stock exchanges, along with any other necessary regulatory approvals. An Extra-Ordinary General Meeting (EOGM) is scheduled for December 12, 2026, to seek shareholder consent for these proposals.
Unaudited Financial Results
The Board also considered and approved the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026. These results, along with the Statement of Assets and Liabilities and Cash Flow Statements, were reviewed and recommended by the Audit Committee and included the Limited Review Reports from the Statutory Auditors.
Source: BSE
