Balu Forge Industries Allots 16.30 Lakh Equity Shares Through Convertible Warrant Conversion

Balu Forge Industries Limited has successfully completed the allotment of 16.30 lakh equity shares through the conversion of convertible warrants, as approved by the Board of Directors on February 25, 2026. The conversion represents a significant capital infusion for the company, with total proceeds of Rs. 44.01 crore received from three non-promoter investors. Share Allotment Details The company issued 16.30 lakh equity shares with a face value of Rs. 10 each at an issue price of Rs. 360 per share. This pricing includes a premium of Rs. 350 per share, reflecting strong investor confidence in the company's prospects. The conversion was executed at a 1:1 ratio, meaning each convertible warrant was converted into one fully paid-up equity share. Parameter Details Total Shares Allotted 16.30 lakh Face Value Rs. 10 per share Issue Price Rs. 360 per share Premium Rs. 350 per share Conversion Ratio 1:1 Total Proceeds Rs. 44.01 crore Investor Participation Three non-promoter investors participated in the convertible warrant conversion, demonstrating institutional interest in the company's growth trajectory. Investor Category Shares Allotted Consideration (Rs.) Ebisu Global Opportunities Fund Limited Non-Promoter Group 11.00 lakh 29.70 crore Rakesh Hasmukhlal Kanabar Non-Promoter Group 3.30 lakh 8.91 crore Ovata Equity Strategies Master Fund Non-Promoter Group 2.00 lakh 5.40 crore Ebisu Global Opportunities Fund Limited emerged as the largest participant, converting 11.00 lakh warrants and contributing Rs. 29.70 crore to the total proceeds. Financial Structure The convertible warrant structure followed a two-stage payment mechanism. Initially, 25% of the total consideration was received upon warrant allotment, with the remaining 75% collected during the conversion process. This structure provided the company with staged capital infusion while offering investors flexibility in their investment timing. Regulatory Compliance The allotment was conducted in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both BSE Limited and National Stock Exchange of India Limited about the completion of the allotment process, ensuring full regulatory compliance and transparency for all stakeholders. Balu Forge Industries has delivered strong financial results for Q3 and nine months FY26, demonstrating sustained growth momentum across its precision engineering operations. The company reported revenue from operations of Rs 3,111 Mn for Q3 FY26, representing a 21.6% year-on-year increase, supported by robust demand across its diversified end-market portfolio. Financial Performance Highlights The company's quarterly performance showcased strong operational leverage with EBITDA reaching Rs 845 Mn, marking a 24.8% year-on-year growth. EBITDA margin remained healthy at 27.2%, reflecting stable cost structures and operational efficiency gains. Profit after tax for the quarter stood at Rs 711 Mn, up 20.5% from Q3 FY25, with PAT margin of 22.5%. Metric: Q3 FY26 Q3 FY25 YoY Growth (%) Revenue from Operations: Rs 3,111 Mn Rs 2,558 Mn 21.6% EBITDA: Rs 845 Mn Rs 677 Mn 24.8% PAT: Rs 711 Mn Rs 590 Mn 20.5% EBITDA Margin: 27.2% 26.5% - PAT Margin: 22.5% 22.2% - For the nine months ended December 31, 2025, the company achieved even stronger growth metrics with revenue from operations of Rs 8,438 Mn, representing 29.0% year-on-year growth. EBITDA for 9M FY26 reached Rs 2,396 Mn with 36.0% growth and margin expansion to 28.4%. PAT grew by 36.8% to Rs 1,932 Mn with margin of 22.6%. Strategic Operational Milestones During Q3 FY26, Balu Forge successfully operationalized several high-impact strategic assets positioning the company for sustained growth. The company commissioned precision machining facilities equipped with advanced 7-Axis and 11-Axis CNC machining lines, enabling manufacture of highly complex components from specialized alloys with micron-level accuracy. Development: Details Precision Machining: 7-Axis and 11-Axis CNC lines operational Shell Production: 360,000 shells per annum capacity NATO Induction: Formal entry into NATO Supply Chain Facility Expansion: 46-acre Belagavi facility development The company commercialized its dedicated artillery shell production line with focus on 155mm large calibre ammunition. This represents a significant milestone in defence manufacturing journey, supporting the Atmanirbhar Bharat vision through indigenous capabilities in strategically critical segments. Global Recognition and Market Expansion Balu Forge achieved formal induction into the NATO Supply Chain during the quarter, representing external validation of the company's adherence to highest global quality, compliance, and reliability standards. This recognition opens access to demanding defence markets and reinforces the company's position to support long-term supply programs with capacity to service engagements for up to five years. Revenue Diversification Progress The company's revenue mix continues evolving across end-user industries, with defence contribution increasing to 12% in 9M FY26 from 9% in FY25. Agriculture remains the largest segment at 36%, while commercial vehicles expanded to 20%. The order book shows further diversification with defence/aerospace/railway representing 40% of total orders, indicating strong future growth visibility in high-margin segments. Segment: 9M FY26 FY25 Order Book Agriculture: 36% 40% 14% Defence: 12% 9% 40% Commercial Vehicles: 20% 18% 19% Power Generation: 17% 18% 5% Manufacturing Infrastructure Enhancement The company operates four strategically located manufacturing facilities across India and UAE with total machining capacity exceeding 80,000 MTPA and forging capacity of 1,50,000 MTPA. The 46-acre greenfield facility at Hattargi provides platform for future growth with advanced automation, digital systems, and scalable infrastructure for complex components. Balu Forge's integrated manufacturing platform includes forging infrastructure with 25T, 16T and 10T hydraulic hammers, 8,000T mechanical press line, and 1,000T hydraulic press line. The company serves 25+ global OEMs across 80 countries with precision-engineered components for automotive, industrial machinery, power generation, defence, and railways sectors. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. 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