Infra major GG Engineering announces fundraising plan through convertible warrants

Infrastructure major GG Engineering has announced that the board has approved a plan to raise funds through the issuance of convertible warrants on a preferential basis. According to a statement by the company, the board has approved the fundraising plan to the tune of Rs 99 crore.

The statement added that it will issue 75 crore fully convertible warrants which will be convertible into equities.

"Raising of funds by way of creating, issuing and allotting up to 75 crore fully-convertible warrants carrying a right exercisable by the warrant holder to subscribe to one equity share having face value of Re 1 per warrant, to persons belonging to promoter and non-promoter, public category on preferential basis at an issue price of Rs 1.32 per warrant," it said in a filing.

Warrants may get listed on the exchanges in terms of Chapter V of SEBI (ICDR) Regulations, it added.

The proposal to raise funds is, however, subject to shareholders' approval and other statutory approvals, the statement added.

Besides, the firm's board has also approved increasing the authorized share capital of Rs 90 crore to Rs 165 crore.

Meanwhile, the board also appointed Anshu Jain as whole-time director and Chief Executive Officer (CEO) of the company for a period of 5 years commencing from September 2, 2023, till September 1, 2028.

Incorporated in 2006, GG Engineering is mainly engaged in the business of manufacturing metal products including heavy steel products. It recently forayed into the infrastructural steel business. It aims to target 20 per cent growth in its revenue from the infrastructural steel business. 

The company has been at the forefront of meeting the rising demand for superior infrastructural and structural steel and engineering products.

It is also in the advanced stages of exploring to add new products including steel pipes and hollow sections to the infrastructure vertical which will boost the revenue further, according to a statement.