This small-cap trades below its book value despite zooming 12 per cent!
So, the market participants must be wondering, what’s cooking in the stock!
Gallantt Metal is grabbing all the limelight on D-Street on Friday as the stock has zoomed over 12 per cent on the back of robust volumes. Volumes for the day have already surpassed their prior trading volume and been the highest daily volume since May 13, 2022.
Technically, the stock has formed a sizeable bullish candle and surpassed its recent swing high, which was registered on May 18, 2022.
So, the market participants must be wondering, what’s cooking in the stock!
National Company Law Tribunal, New Delhi Bench has approved the scheme of amalgamation of Gallantt Ispat Limited (GIL), AAR Commercial Company Limited (AAR), Hipoline Commerce Private Limited (Hipoline), Lexi Exports Private Limited (Lexi), and Richie Credit & Finance Private Limited (Richie) with Gallantt Metal Limited (GML) and slump sale of power plant undertaking of GIL to GML (the ‘scheme’) under the provisions of Section 230- 232 of Companies Act,2013.
The board of directors of the company at its meeting held on Thursday i.e. on May 26, 2022, has fixed June 7, 2022, as the ‘record date’ for the purpose of allotment of shares by Gallantt Metal Limited to the shareholders of Gallantt Ispat Limited upon its amalgamation with Gallantt Metal Limited as per the scheme of amalgamation approved by National Company Law Tribunal, Kolkata and New Delhi Bench vide their respective orders dated September 22, 2021, & May 20, 2022, respectively
In accordance with the scheme of amalgamation, Gallantt Metal Limited will issue and allot to those shareholders of the company whose names would appear in the register of members on the above record date, 13 fully paid-up equity shares of Rs 10 each of Gallantt Metal Limited, for every 14 equity shares of the paid-up value of Re 1 each held by such member in the company.
The stock has a book value of Rs 94.8 while its current market price is Rs 74. The stock has delivered returns of nearly 9 per cent in the last one year.