Penny Stock Below Rs 2 G G Engineering Opens 38:29 Rights Issue, Issue To Close Next Week

One of the leading manufacturers of engineering goods, structural & infrastructural steel, is G G Engineering Ltd. Currently open, the corporate rights issue is scheduled to end on July 31, 2023. The company will issue up to 49,88,20,215 fully paid-up equity shares with a face value of Rs. 1 each, for cash, at a price of Rs. 1, aggregating up to Rs. 4989 lakhs, to eligible equity shareholders in a ratio of 38 equity shares for every 29 fully paid-up equity shares held by eligible equity shareholders as of the record date of July 11, 2023.

The company recorded revenue from operations of Rs 18.94 Cr in Q1FY24 up by 143.42% YoY from Rs 7.78 Cr recorded in Q1FY23. EBITDA climbed by 226.88% from Rs 0.16 Cr in Q1 FY23 to Rs 0.53 Cr reported in the quarter under review while EBITDA margins grew from 2.08% in Q1 FY23 to 2.79% in Q1 FY24 by 71 bps. G G Engineering said its net profit reached Rs 0.33 Cr in the quarter ended 30 June 2023 up by 144.79% YoY from Rs 0.13 Cr reported in the year-ago quarter.

Commenting on the Q1FY24 performance, the management of G G Engineering said "We are pleased to announce the remarkable financial results for the Q1FY24, which demonstrate our continued commitment to growth, efficiency, and value creation. We have achieved significant improvements YoY in revenue, EBITDA, EBITDA margins, and profit after tax, reflecting the success of our strategic initiatives and the dedication of our team. Despite the prevailing economic challenges and uncertainties, we are confident in our ability to navigate the landscape and capitalize on opportunities that lie ahead. We will continue expanding our market presence to drive sustained growth and shareholder value."

On Thursday, the shares of G G Engineering opened on the BSE at Rs 1.19 apiece and while writing this copy the scrip was trading at Rs 1.16 with a downside gap of 0.85%. The stock made a 52-week-high of Rs 3.16 on (13/09/2022) and a 52-week-low of Rs 0.74 on (31/03/2023). In the last 1 year the stock has fallen 22.30% and on a YTD basis the scrip has fallen 3.36% so far in 2023.

During Q1FY24, the company reported promoter shareholding of 1.93% and public stake of 98.07%.