Penny stock: New Delhi-based Integra Essentia has announced the amalgamation of GG Engineering with itself, aiming to preserve the operations of both companies, strengthen their foundation, enhance market competitiveness, and improve financial stability and performance.
Integra Essentia is engaged in four key business segments: agro products, clothing, infrastructure, and energy. Its authorised capital stands at ₹125 crore, with 1.06 billion fully paid equity shares of Re 1 each.
Meanwhile, established in 2006 and headquartered in Mumbai, GG Engineering operates in the infrastructure sector, primarily manufacturing steel products for diverse industries. It has an authorised capital of ₹165 crore and 1.58 billion equity shares issued at Re 1 each. Additionally, 4.5 crore outstanding convertible warrants are set to be converted into equity shares before the merger’s record date.
As part of the amalgamation scheme, Integra Essentia (transferee company) shall issue and allot 48 equity shares of face value of Re 1 each to equity shareholders of GG Engineering (transferor company) for every 100 equity shares of face value of Re 1 each held by them, the company said in an exchange filing on Monday.
The amalgamation aims to create a stronger, consolidated entity with enhanced operational capabilities and market competitiveness. Key benefits highlighted by the companies include:
Strength Consolidation: GG Engineering’s expertise in steel products will complement Integra Essentia’s infrastructure business, strengthening operations.
Shareholder Value Creation: Improved profitability, cost efficiencies, and growth opportunities are expected to enhance shareholder returns.
Streamlined Management: Simplifying the corporate structure will enable focused leadership and operational growth.
Following the effective date of the merger, GG Engineering’s assets, liabilities, contracts, and employee obligations will be transferred to Integra Essentia.
Integra Essentia, GG Engineering share price history
GG Engineering’s share price was trading flat at ₹1.72 on December 17 at 11:05 am on the BSE. Meanwhile, Integra Essentia share price was trading in the green, up 0.87 per cent, at ₹3.49, during the same period on BSE.
Notably, Integra Essentia has delivered a staggering 458 per cent return over the last three years, whereas GG Engineering’s stock has declined by 64 per cent during the same period.
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