Heavy equipment maker GG Engineering approves Rs 99 crore fundraising proposal through preferential allotment

GG Engineering, a leading heavy electrical equipment maker, has approved the plan to raise funds to the tune of Rs 99 crore through the issuance of convertible warrants on a preferential basis.

A convertible warrant is a way for listed entities to raise funds from the market to meet general corporate purposes, expand operations and other needs.

According to an official statement, the company's board has approved the preferential allotment of up to Rs 75 crore fully convertible warrants.

The warrant holders will have the right to exercise the option of converting them into equity shares. The warrant price has been set at Rs 1.32 apiece.

The preferential allotment is in accordance with the provisions of SEBI Regulations, for an aggregate amount of up to Rs 99 crore, it said. Warrants may get listed on the exchanges in terms of Chapter V of SEBI (ICDR) Regulations, it added.

The objective of the fundraising activity is to to finance the working capital requirements, including repayment or prepayment thereof, meeting various expenditures including contingencies, financing strategic initiatives and general corporate purposes.

Additionally, the board has approved the appointment of Anshu Jain as the full-time director and CEO for a five-year term, beginning September 2 this year.

GG Engineering, incorporated in 2006, is engaged in the heavy electrical equipment industry. It manufactures metal products including heavy steel items. The firm recently ventured into the infrastructural steel business.

In the April-June quarter, its revenue had jumped more than 140 per cent to Rs 18.9 crore on a yearly basis led by an increase in manufacturing activities. The revenue in the same quarter of the previous financial year stood at Rs 7.7 crore.

The series of measures taken by the government in the past few years including the Atmanirbhar packages, the PLI scheme, and investment opportunities under the National Infrastructure Pipeline and National Monetisation Pipeline (NMP) have given impetus to the manufacturing sector.