Penny stock under Rs 2 to raise up to Rs 99,00,00,000 by allotting convertible warrants to promoters & non-promoters for the company’s growth; do you own it?
The shares have a PE of 5.87x whereas the industry PE is 26.60x.
G G Engineering Ltd informed that the Board of Directors of the company considered and approved the raising of funds by way of creating, issuing and allotting up to 75,00,00,000 fully convertible warrants (Warrants), carrying a right exercisable by the warrant holder to subscribe to one equity share having face value of Rs 1 per warrant, to persons belonging to ‘Promoter and Non-Promoter, Public Category’ on preferential basis at an issue price of Rs 1.32 per warrant, subject to shareholders' approval and other statutory approvals, aggregating amount of up to Rs 99,00,00,000 for cash for company’s growth.
Recently, the company has won orders valued at Rs 21 crore for supplying iron raw materials to prominent industrial houses of repute consuming steel as the primary raw material. The company will be completing these supplies within the next 30‐45 days and is anticipating additional orders as well for Q3 of the current financial year 2024. The company has been working on a vertical integration strategy, expanding its role in the supply chain of raw materials, as well as the sales of engineering products in the steel including heavy steel business arenas.
G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management.
According to the Quarterly Results, the revenue from operations grew by 143.42 per cent to Rs 1894.66 lakh, EBITDA increased by 226.88 per cent to Rs 53.02 lakh and PAT increased by 145 per cent to Rs 33.88 lakh in Q1FY24 compared to Q1FY23.
After rising nearly 40 per cent over the period of 3 months, shares of G G Engineering Ltd are undergoing a correction and have hit the lower circuit for the sixth straight day. Today, shares of G G Engineering Ltd plunged 2 per cent to Rs 1.18 per share from its previous closing of Rs 1.20.
The stock’s 52-week high is Rs 3.16 and its 52-week low of Rs 0.74. The shares have a PE of 5.87x whereas the industry PE is 26.60x. Investors should keep this penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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