Balu Forge Industries announced the allotment of 20,60,000 Equity Shares on March 6, 2026. These shares, issued at an exercise price of ₹360 each (including a premium of ₹350), resulted from the conversion of outstanding Convertible Warrants. The allotment was made to two key investors, including Promoter Group member Jaikaran Jaspalsingh Chandock and Non-Promoter Rakesh Hasmukhlal Kanabar. The total consideration received for this final conversion tranche was ₹55,62,00,000.
Balu Forge Announces Equity Share Allotment
Balu Forge Industries Limited has formally disclosed the completion of a significant issuance of equity shares following the exercise of options attached to previously issued Convertible Warrants. The Board of Directors sanctioned the allotment on Friday, March 6, 2026.
Details of Securities Issued
A total of 20,60,000 (Twenty Lakhs and Sixty Thousand) Equity Shares were allotted. These shares have a face value of ₹10/- (Rupees Ten Only) each.
The issue price was set at ₹360/- (Rupees Three Hundred Sixty Only) per share, which incorporates a substantial premium of ₹350 per share. The conversion ratio applied was 1:1, meaning one fully paid-up equity share was issued for every warrant exercised.
Investor Allocation and Consideration
The allotment saw the conversion of warrants held by both Promoter and Non-Promoter categories. The full breakdown of the allotment and the corresponding consideration received (representing the final 75% balance payment) is detailed below:
- Rakesh Hasmukhlal Kanabar (Non-Promoter Group): Received 5,60,000 Equity Shares, contributing ₹15,12,00,000.
- Jaikaran Jaspalsingh Chandock (Promoter Group): Converted warrants for 15,00,000 Equity Shares, with a total consideration of ₹40,50,00,000.
The aggregate total consideration received from this final tranche of warrant exercise amounted to ₹55,62,00,000.
Instrument Conversion Context
This transaction signifies the successful exercise of 20,60,000 convertible warrants, resulting in the issuance of an equivalent number of fully paid-up equity shares. It is noted that 25% of the total consideration for these warrants was received at the initial allotment stage, with the remaining 75% now finalized upon conversion.
Source: BSE
