Balu Forge Industries (BFIL) has announced a fund-raise of Rs. 496.80 crore in a combination of preferential issue of equity shares and fully convertible warrants to strengthen its manufacturing capacity and capability to play its role in making India atmanirbhar or self-reliant in defence, railways and aerospace sector and turning the vision of Viksit Bharat into reality.
The board of BFIL has approved an issue of 45,00,000 equity shares of face value of Rs. 10 each at a premium price of Rs. 350 per equity share aggregating up to Rs. 162,00,00,000 by way of preferential issue to the non-promoter public category investors. The board has also approved an issue of 63,00,000 fully convertible warrants to the non-promoter public category investors and 30,00,000 fully convertible warrants to the promoter category at an issue price of Rs.360 per warrant.
BFIL will majorly deploy a majority of the funds to undertake special R&D initiatives to further enhance the special engineering capability in the field of defence and aerospace components. The company will further add a new capability in the form of a Direct Drive Screw Press Line capable of producing aerospace and high precision components and SPM line for defence production. The product mix includes an extensive large portfolio covering railways, defence and aerospace industries.