Penny stock under Rs 2: Board announced fund raising up to Rs 99,00,00,000 by allotting warrants to promoters & non-promoters for the company’s growth!
The shares have a PE of 5.87x whereas the industry PE is 26.60x.
GG Engineering Ltd.'s board of directors has approved a plan to raise up to Rs 99,00,00,000 through the issuance of 75,00,00,000 fully convertible warrants for cash for the company’s growth. The warrants will be issued to promoters and non-promoters on a preferential basis at an issue price of Rs 1.32 per warrant. The warrants will be convertible into equity shares at a face value of Rs 1 per share.
The fundraising is subject to shareholder and regulatory approvals. Mr Kamal Beriwal, the promoter of the company will be allotted 2,00,00,000 warrants and the rest 73,00,00,000 will be allotted to the 17 non-promoters of the company accordingly.
The company has recently secured orders worth Rs 21 crore 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 company has been working on a vertical integration strategy, expanding its role in the raw materials supply chain as well as the sales of engineering products in the steel and heavy steel sectors.
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.
On Friday, shares of G G Engineering Ltd surged 2 per cent to Rs 1.24 per share from its previous closing of Rs 1.22. 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. The stock is up by 36 per cent in just 3 months. 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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