Penny stock under ₹5: Small cap stock GG Engineering raises ₹99 crore via fresh equities
Penny stock under ₹5: GG Engineering is a small-cap stock with a market cap of little over ₹102 crore. The penny stock is one of the news maker shares on Monday as board of directors of the company have approved fund raise to the tune of ₹99 crore through issuance of fresh issues on preferential basis.
The small-cap company has issued 75 crore fresh warrants, which is convertible into equities. These fresh warrants were offered at ₹1.32 apiece.
The small-cap company informed Indian stock market bourses about the fund raise citing, “In terms of Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held on today i.e. Saturday, September 02, 2023, inter-alia considered and approved raising of funds by way of creating, issuing and allotting up to 75,00,00,0000 (Seventy-Five Crores only) fully Convertible Warrants ('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/- (Rupees One and Thirty-Two Paisa Only) per Warrant, subject to shareholders' approval and other statutory approvals, in accordance with provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up-to-date and applicable provisions of Companies Act, 2013 and rules made there-under, aggregating amount of up to Rs. 99,00,00,000/- (Rupees Ninety-Nine Crores only) for cash." This small-cap stock under ₹5 is available for trade on BSE only.
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