Balu Forge Industries shares soar 12%, here’s the reason

Balu Forge Industries shares have surged nearly 280 per cent from its 52-week low of Rs 53 a year back, while the stock has almost doubled in the last three months.

Balu Forge Industries shares climbed in Tuesday’s trade to hit new 52-week highs as the firm mulls fundraising goals. In an exchange filing on Tuesday, the firm said the company committee will probably meet soon to think about the fundraising plans.

The organization board of Balu Forge Industries is scheduled to meet on Monday, September 4, 2023, to think about the bid for fundraising by way of preferential issue/private placement of convertible securities to the promoter and promoter group type of investors, said the exchange filing.

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“The board of directors will also work on the determination of issue price subject to such regulatory approvals as may be required, including the approval of shareholders of the company,” it continued. “The company board will also finalize the day, date, time and notice for the annual general meeting of the company for the financial year ended 2022-23 and seek shareholders’ approval.”

Following the announcement, Balu Forge Industries shares jumped by almost 12 per cent to Rs 201 on Tuesday, striking its new 52-week high with a total market capitalization of about Rs 1,950 crore. The stock had settled at Rs 181.65 in the last trading session on Monday.