Promoter bought 2,00,00,000 shares and non-promoters bought 13,50,00,000 shares of this multibagger penny stock below Rs 3 via preferential issue!

The stock gave multibagger returns of 125 per cent in 6 months whereas BSE Industrial Index is up by 36 per cent.

G G Engineering Limited informed that the Board of Directors of the company in their meeting held today i.e Friday, December 29, 2023, inter‐alia, considered and approved the allotment of conversion of 15,50,00,000 warrants into 15,50,00,000 equity shares of the face value of Rs 1 each, to “Promoter and Promoter Group” and “Non-Promoters/Public Category”, on preferential basis, upon receipt of balance amount aggregating to Rs 15,34,50,000 at the rate of Rs 0.99 per warrant (being 75 per cent of the issue price per warrant) from the allottees according to the exercise of their rights of conversion into equity shares.  

Both promoters and non-promoters were offered the right to buy warrants at a discounted price, initially paying 25% with the remaining 75% due within 18 months. Converting all outstanding warrants would increase the company's capital to Rs 103,44,98,800.

The promoter of the company Mr Kamal Beriwal was allocated a total of 2,00,00,000 and non-promoters of the company (Aryadeep Tie Up Private Limited, One Tree Hill Properties Private Limited and Orchard Road Properties Private Limited) were allocated a total of 13,50,00,000 shares (4,50,00,000 shares each non-promoter).

After nearly rising 100 per cent in 3 months, shares of G G Engineering Ltd are undergoing a correction, hitting the lower circuit for the 14^th straight day. Today, shares of G G Engineering Ltd hit 2 per cent lower circuit to Rs 2.19 per share from its previous closing of Rs 2.23 per share. The stock’s 52-week high is Rs 2.77 per share and its 52-week low is Rs 0.74.

G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management. The company announced it Quarterly Results (Q2FY24) and half-yearly results (H1FY24) for the fiscal year 2024. Here are the details:

According to the standalone quarterly results, the revenue from operations grew by 98.39 per cent to Rs 73.24 crore, EBITDA increased by 139.77 per cent to Rs 1.27 crore and PAT increased by 53 per cent to Rs 0.75 crore in Q2FY24 compared to Q2FY23.

According to the half-yearly results, the revenue from operations grew by 405 per cent to Rs 54.87 crore, EBITDA increased by 362 per cent to Rs 8.20 and PAT increased by 388 per cent to Rs 7.30 crore in H1FY24 compared to H1FY23.

The company has secured orders worth Rs 21 crore in H1FY24 to supply iron raw materials to major industrial houses that use steel as their primary raw material. The company will complete these deliveries within the next 30-45 days and is expecting additional orders for the third quarter of the current financial year 2024. The stock gave multibagger returns of 125 per cent in 6 months whereas BSE Industrial Index is up by 36 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.