Penny stocks under Rs 5 in focus on merger updates; complete details inside!
Penny stock IEL gave multibagger returns of 458 per cent in the past 3 years, while penny stock GGEL has lost 64 per cent in the same period.
The plan for merging G G Engineering Limited (Transferor Company) with Integra Essentia Limited (Transferee Company). The amalgamation aims to create a stronger combined entity and benefit stakeholders of both companies.
Key Details of the Companies
- Transferor Company (G G Engineering Limited): Incorporated on January 23, 2006, with a registered office in Mumbai. The company operates in the infrastructure sector, manufacturing steel products for various industries. It has an authorized share capital of Rs 1,65,00,00,000 with 1,58,44,98,800 equity shares of Re 1 each issued and subscribed. As of the scheme's approval date, 4,50,00,000 outstanding convertible warrants will be converted into equity shares before the record date.
- Transferee Company (Integra Essentia Limited): Incorporated on August 6, 2007, with a registered office in New Delhi. The company operates in four business segments: agro products, clothing, infrastructure, and energy. It has an authorized share capital of Rs 1,25,00,00,000 with 1,06,76,90,544 equity shares of Re 1 each issued and fully paid up.
Rationale for the Amalgamation
The document highlights several reasons for merging the two companies:
- Consolidation of Strengths: The merger will combine G G Engineering's expertise in steel products with Integra Essentia's infrastructure division, enhancing operational capabilities and market competitiveness.
- Value Creation for Shareholders: Shareholders of both companies are expected to benefit from reduced financial costs, improved profitability, and potential business expansion opportunities.
- Focused Management and Growth Prospects: The amalgamation aims to simplify management structures and create a more streamlined approach, leading to improved performance and attracting growth opportunities.
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Transfer and Vesting of Undertaking
Upon the effective date of the amalgamation, the entire business and undertaking of G G Engineering Limited will be transferred to Integra Essentia Limited. This includes all assets, liabilities, contracts, and employee rights. The transferee company will assume all obligations and liabilities of the transferor company. The transfer will be subject to existing securities, charges, and mortgages.
On Monday, shares of Integra Essentia Ltd gained 3.57 per cent to an intraday high of Rs 3.48 per share from its previous closing of Rs 3.36 per share while shares of G G Engineering Ltd gained 5.78 per cent to an intraday high of Rs 1.83 per share from its previous closing of Rs 1.73 per share.
Penny stock IEL gave multibagger returns of 458 per cent in the past 3 years, while penny stock GGEL has lost 64 per cent in the same period. Investors should keep an eye on these Penny Stocks.
Disclaimer: The article is for informational purposes only and not investment advice.