Penny stocks under Rs 10: These 2 micro-cap companies announce potential consolidation to create a larger and stronger entity!

Penny stock IEL gave multibagger returns of over 900 per cent in the past 3 years, while penny stock GGEL has lost 73 per cent in the same period.

On September 20, 2023, two micro-cap companies, G G Engineering Ltd and Integra Essentia Ltd, met at their registered office to discuss various matters. Here are the details:

The Board of Directors of both companies has granted in-principle approval for evaluating consolidation proposals with each other: G G Engineering Limited (GGEL) and Integra Essentia Limited (IEL). Both companies are listed on the BSE Limited and engaged in complementary businesses.

The Board believes that consolidation with GGEL and IEL would create a larger and stronger entity, subject to statutory, regulatory, and other approvals, including relevant third-party consents. This would help to pool in the experience, expertise, resources, and client base of the three companies, offering a larger bouquet of life-essential products, FMCG goods, energy, and infrastructure products. The proposed consolidation is also expected to result in streamlining of operations, cost efficiency, and accelerated business growth.

The Board has delegated powers to the officers/KMPs of the Company to evaluate the consolidation in consultation with advisors, who may be appointed in due course.

Additionally, the Board considered and approved the redemption of debentures which were originally issued by the company on July 01, 2013, as per the offer negotiated with the NCD holder for a Lump-sum payment of Rs 1,50,00,000 towards full and final settlement/redemption of the entire 2,845 unsecured, non-convertible redeemable debenture of Rs 100 thousand each.

On Wednesday, shares of Integra Essentia Ltd jumped 5 per cent upper circuit to Rs 7.42 per share from its previous closing of Rs 7.07 while shares of G G Engineering Ltd plunged 1.67 per cent to Rs 1.18 per share from its previous closing of Rs 1.20 per share.

Penny stock IEL gave multibagger returns of over 900 per cent in the past 3 years, while penny stock GGEL has lost 73 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.