Multibagger penny stock under Rs 3: The company announces allotment of 75,00,00,000 warrants with conversion rights and lock-in period!

The stock gave multibagger returns of over 100 per cent in 6 months.

G G Engineering Limited informed that based on shareholder approval at the company's annual general meeting and stock exchange approval, the Board of Directors has authorized the issuance of 75 crore fully convertible warrants. These warrants allow holders to purchase one equity share of the company for Rs 1.32 each, with 25 per cent of the price payable upfront and the remaining 75 per cent due within 18 months.

Key Points:

• Eligible holders: Promoters, non-promoters, and the public category.
• Conversion: Each warrant converts into one fully paid equity share of the company upon payment of the remaining price.
• Corporate action rights: Warrant holders receive benefits like bonus shares, rights issues, and share splits/consolidations.
• Lock-in period: Warrants issued on a preferential basis will be subject to a lock-in period as per regulations.

Overall, this announcement offers investors the opportunity to acquire company shares at a potentially advantageous price with conversion rights and participation in future corporate actions. However, the lock-in period and additional payment requirements should be considered before subscribing to the warrants.

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 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.

Today, shares of G G Engineering Ltd plunged 0.75 per cent to Rs 2.65 per share from its previous closing of Rs 2.65. The stock’s 52-week high is Rs 1.80 and its 52-week low of Rs 0.74. The shares have a PE of 12.4x whereas the industry PE is 29x. The stock gave multibagger returns of over 100 per cent in 6 months.

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