Heavy Electrical Equipment Stock Under Rs 5; Board Updates on the Amalgamation Process with Integra Essentia Ltd
From Re 1.07 (52-week low) to Rs 2.02 per share, the stock is up by 89 per cent.
On Wednesday, shares of G G Engineering Ltd plunged 0.49 per cent to Rs 2.02 per share from its previous closing of Rs 2.03 per share. The stock’s 52-week high is Rs 2.97 per share and its 52-week low is Rs 1.07.
G G Engineering Limited (GGEL) is an Indian company that manufactures engineering products, infrastructure, and structural steel. The company was established in 2006 and is based in India. GGEL's products are used in many industries, including construction, infrastructure, mega projects, modern buildings, and high-rise residential and commercial projects.
In the board meeting held on August 14, 2024, the directors of G G Engineering Limited and Integra Essentia Limited approved significant updates to the Scheme of Arrangement for Amalgamation. These changes were made in response to recommendations from BSE Limited and include adding a specific clause for the reclassification of G G Engineering Limited’s promoters as public shareholders in Integra Essentia Limited after the merger is finalized. Additionally, minor clerical modifications were made to the scheme, while all other terms and conditions remain the same. The updated scheme will be submitted to the stock exchanges shortly for further approval.
Previously, on July 5, 2024, the board had approved the initial Scheme of Arrangement for the amalgamation. This decision followed comprehensive assessments, including a valuation report dated June 29, 2024, and a fairness opinion, both provided by registered experts. The merger is intended to combine the strengths of both companies, particularly in the infrastructure and engineering sectors, thereby enhancing their operational capabilities and market competitiveness.
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This amalgamation aims to generate significant value for shareholders by reducing costs, improving profitability, and opening new avenues for growth. A dedicated committee has been established to manage the amalgamation process, ensuring that all necessary approvals from regulatory authorities and stakeholders are obtained on time. The board is focused on achieving the strategic objectives of this merger, which include realizing business synergies and driving long-term growth for the combined entity.
According to Quarterly Results, net sales increased by 75.7 per cent to Rs 7,642.11 lakh and net profit increased by 908.5 per cent to Rs 547.03 lakh in Q4FY24 compared to Q3FY24.In its annual results, net sales increased by 113 per cent to Rs 21,210.50 lakh in FY24 compared to Rs 9,956.70 lakh in FY23. The company reported a net profit of Rs 710.47 lakh in FY24 compared to Rs 793.29 lakh in FY23.
The company has a market cap of over Rs 300 crore and has delivered good profit growth of 26 per cent CAGR over the last 5 years. As of June 2024, promoters of the company own a 1.71 per cent stake while the public owns a 98.29 per cent stake. From Re 1.07 (52-week low) to Rs 2.02 per share, the stock is up by 89 per cent. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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