GG Engineering finalises conversion of 13.50 crore warrants into equity shares

Infrastructure major GG Engineering has announced that its board of directors has approved the allotment of equity shares on the conversion of 13,50,00,000 warrants into an equal number of equity shares. 

"Board of Directors of the Company in their meeting held today i.e. Friday, May 03, 2024, inter-alia, considered and approved the allotment of equity shares on conversion of 13,50,00,000 warrants into 13,50,00,000 equity shares at an issue price of Rs. 1.32/- each (including a premium of Rs. 0.32/- each), to “Non-Promoters/Public Category”, on preferential basis, upon receipt of balance amount aggregating to Rs. 13,36,50,000/- (Rupees Thirteen Crores and Thirty-Six Lakhs Fifty Thousand Only) at the rate of Rs. 0.99 (Ninety Nine Paise only) per warrant," the company said in an exchange filing.

These warrants were issued to promoters and promoter group and non-promoters/public category, on a preferential basis, at an issue price of Rs 1.32 per warrant on payment of Rs 0.33 per warrant - which is 25 per cent of the issue price. 

These warrant holders were entitled to get their warrants converted into an equal number of equity shares of the company by paying the remaining 75 per cent i.e., Rs 0.99 within 18 months from the date of warrant allotment.

Following the conversation of warrants and allotment of equity shares, the issued and paid-up capital of the company stands increased to Rs 116,94,98,800 with 116,94,98,800 equity shares of Re 1 each.

The company said that 46,00,00,000  warrants are outstanding for conversion.

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.