Micro-Cap Stock GG Engineering Okays Allotment of Shares In Exchange For Convertible Warrants

Amid the bumper rise in the stock market, the shares of GG Engineering Limited were showing slight weakness and were trading at the level of Rs 2.02. The 52-week high of the shares of GG Engineering, a micro-cap company with a market cap of around Rs 310 crore, is Rs 2.57 while the 52-week low is Rs 0.87.

GG Engineering has informed the stock market that the issue price for converting warrants into equity shares was Rs 1.32. These warrants were issued to non-promoter public category investors on a preferential basis, which are now being converted into shares. GG Engineering has received Rs 4.5 crore at the rate of 75 per cent of the issue price per warrant. 25 per cent of the issue price or 33 paise per warrant was paid at the time of issuing the warrants.

After the conversion of warrants, the issued and paid-up capital of GG Engineering has increased to Rs 158.44 crore.
Shares of GG Engineering have been witnessing weakness for the last few days but in the last 6 months, it has given a return of 16 per cent to the investors while in the last 1 year, it has given a bumper return of 124 per cent from the level of Rs 0.90. GG Engineering has informed the stock market that the Board of Directors of the company, in the meeting held on May 23, has approved the conversion of 5 crore warrants of the company into an equal number of shares.

Recently, the company announced quarterly results, where net sales increased by 75.7 per cent to Rs 7,642.11 lakh and net profit increased by 908.5 per cent to Rs 547.03 lakh in Q4FY24 compared to Q3FY24.

In its annual results, net sales increased by 113 per cent to Rs 21,210.50 lakh in FY24 compared to Rs 9,956.70 lakh in FY23. The company reported a net profit of Rs 710.47 lakh in FY24 compared to Rs 793.29 lakh in FY23.

GG Engineering Limited (GGEL) is an Indian company that manufactures engineering products, infrastructure, and structural steel. The company was established in 2006 and is based in India. GGEL's products are used in many industries, including construction, infrastructure, mega projects, modern buildings, and high-rise residential and commercial projects.