After 120% YTD Gain GG Engineering Below Rs 3 Declares 75 Cr Warrants

G G Engineering is a capital goods firm with a small market capitalization.G G Engineering Limited was founded in 2006 and produces high-quality engineering and structural steel products. In today's meeting, Thursday, December 14, 2023, the Company's Board of Directors discussed and authorised the issuance of 75 Cr fully convertible warrants.

"Pursuant to the members' approval obtained at the 17th Annual General Meeting held on September 29, 2023 by means of passing a Special Resolution and 'In-Principal Approval' obtained from the Stock Exchange i.e. BSE Limited, we wish to inform you that the Board of Directors of the Company in their meeting held on today i.e.

Thursday, December 14, 2023, considered and approved, allotment of 75,00,00,000 (Seventy Five Crores only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share per Warrant, to persons belonging to 'Promoter and Non-Promoter, Public Category' on preferential basis at an issue price of Rs. 1.32/- (Rupees One and Thirty-Two Paisa Only) per Warrant, after receipt of stipulated amount i.e. 25% of the Issue Price as subscription amount in accordance with provisions of Chapter V of SEBI ICDR Regulations, to the persons ("Allottees")," said G G Engineering in a stock exchange filing.

"Each of the Warrant, so allotted, is convertible into or exchangeable for one fully paid-up equity share having a face value of Re. 1/- (Rupee One only) of the Company in accordance with the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration i.e. 75% of the Warrant Issue Price from the Allottees within 18 months from the date of allotment of these warrants.

Further, warrants holders shall be entitled to any corporate action such as issuance of bonus shares, right issue, split or consolidation of shares etc. announced by the Company. These warrants allotted on preferential basis shall be locked-in for specified period in accordance with the provisions of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018," the company said in a regulatory filing.

From the promoter category, Mr. Kamal Beriwal has been allotted 2 Cr warrants and the rest were allocated to the non-promoter, public category with 4.50 Cr warrants each.

On Thursday, the shares of G G Engineering were trading 1.87% down at Rs 2.62 apiece. In the last 1 year, the stock has gained 78.23% and on a YTD basis, the scrip has generated a multibagger return of 120.17%. The scrip reached a 52-week-high of Rs 2.77 on (11/12/2023) and a 52-week-low of Rs 0.74 on (31/03/2023).