Bharat Forge Share Price Snaps Rising Streak After QIP Launch

Shares of Bharat Forge Ltd. snapped a nine-day rise on Thursday after the company launched a qualified institutional placement on Wednesday, offering shares at a floor price of Rs 1,323.54 each, as per an exchange filing.

The indicative price range for the offering is between Rs 1,290 and Rs 1,320, representing a discount of 4.2-6.38% compared to the last closing price on the NSE. The company aims to raise Rs 1,650 crore through this share sale.

Bharat Forge may, at its discretion, offer a discount of up to 5% on the floor price.

For the quarter ended September, Bharat Forge reported a 14% increase in consolidated net profit, rising to Rs 243 crore from Rs 214 crore in the same quarter of the previous financial year. However, revenue declined by 2.3%, falling to Rs 3,689 crore from Rs 3,774 crore.

Motilal Oswal Financial Services noted that Bharat Forge's overall performance in the second quarter was below expectations, citing weaker-than-anticipated domestic business growth and a drop in exports.

Bharat Forge share price rose as much as 1.24% to Rs 1,394.95 apiece. It, however, pared gains to trade 0.01% lower at Rs 1,377.70 apiece, as of 10:43 a.m. This compares to a 0.22% decline in the NSE Nifty 50 Index.

It has risen 11% on a year-to-date basis. Total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 51.39.

Out of 28 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold,' and 10 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.3%.