Balu Forge Industries Ltd Reports No Deviation in Utilization of Proceeds Raised Through Preferential Issues
Balu Forge Industries Ltd has confirmed that there were no deviations or variations in the use of proceeds raised through several rounds of preferential issues for the quarter ended March 31, 2026. The company detailed the utilization of funds across various tranches, which were earmarked for the purchase and installation of plant and machinery, working capital requirements, and general corporate purposes.The company reported four separate fundraising rounds via preferential issues during the specified period, each monitored by Infomerics Valuation and Rating Pvt. Ltd. All allocations were executed according to the original objects stated in the respective Private Placement Offer Letter cum Application Form.
Summary of Preferential Issue Funds Raised
The table below summarizes the details of the funds raised through preferential issues for the quarter ending March 31, 2026:| Date of Raising Funds | Amount Raised (in Rs. Lakhs) | Report Quarter Ended |
|---|---|---|
| February 9, 2026 | 2700.00 | March 31, 2026 |
| February 25, 2026 | 4401.00 | March 31, 2026 |
| March 6, 2026 | 5562.00 | March 31, 2026 |
| March 9, 2026 | 4617.00 | March 31, 2026 |
Fund Utilization Details by Purpose
The company affirmed that funds were utilized precisely according to the specified objects for all four issues, with zero deviation reported in each instance. The utilization details are as follows:Funds Raised on February 9, 2026 (Total: 2700.00 Rs. Lakhs):
The funds were allocated across three main purposes and fully utilized:
| Object | Original Allocation (Rs. Lakhs) | Funds Utilised (Rs. Lakhs) | Amount of Deviation |
|---|---|---|---|
| Purchase & Installation of new/existing Plant & Machinery | 675 | 675 | 0 |
| For Working Capital Requirements of the Company | 1350 | 1350 | 0 |
| General Corporate Purpose (Not exceeding 25% of Issue Size) | 675 | 675 | 0 |
Funds Raised on February 25, 2026 (Total: 4401.00 Rs. Lakhs):
This tranche's funds were also fully utilized against the stated objects:
| Object | Original Allocation (Rs. Lakhs) | Funds Utilised (Rs. Lakhs) | Amount of Deviation |
|---|---|---|---|
| Purchase & Installation of new/existing Plant & Machinery | 1077 | 1077 | 0 |
| For Working Capital Requirements of the Company | 2200.5 | 2200.5 | 0 |
| General Corporate Purpose (Not exceeding 25% of Issue Size) | 1100.5 | 1100.5 | 0 |
Funds Raised on March 6, 2026 (Total: 5562.00 Rs. Lakhs):
The utilization for this round showed funds being fully allocated to the stated purposes:
| Object | Original Allocation (Rs. Lakhs) | Funds Utilised (Rs. Lakhs) | Amount of Deviation |
|---|---|---|---|
| Purchase & Installation of new/existing Plant & Machinery | 0 | 0 | 0 |
| For Working Capital Requirements of the Company | 2781 | 2781 | 0 |
| General Corporate Purpose (Not exceeding 25% of Issue Size) | 1390.5 | 1390.5 | 0 |
Funds Raised on March 9, 2026 (Total: 4617.00 Rs. Lakhs):
The final round also saw complete utilization against its defined objects:
| Object | Original Allocation (Rs. Lakhs) | Funds Utilised (Rs. Lakhs) | Amount of Deviation |
|---|---|---|---|
| Purchase & Installation of new/existing Plant & Machinery | 0 | 0 | 0 |
| For Working Capital Requirements of the Company | 2308.5 | 2308.5 | 0 |
| General Corporate Purpose (Not exceeding 25% of Issue Size) | 1154.25 | 1154.25 | 0 |
BALUFORGE Stock Price Movement
On Thursday, shares of Balu Forge Industries Limited slipped by 1.68% to settle at ₹476. The stock traded 599,585 shares during a day where the price moved between a low of ₹473.55 and a high of ₹494.9.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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