GI Engineering shares hit upper circuit amid fundraising plans

Shares of GI Engineering Solutions hit upper price band during Monday's trading session after the company announced fundraising plans. The company board of directors approved issuance and allotment of 5 crore convertible warrants on a preferential basis to select shareholders of the company.

"The company board considered and approved up to 5,00,00,000 fully convertible warrants, carrying a right exercisable by the warrant holder to subscribe to one Equity Share having face value of Rs 10 per warrant, to persons belonging to non-promoter and public category on preferential basis at an issue price of Rs 15 per warrant," the company said in the exchange filing.

The company is looking to raise Rs 75 crore through the issue of these warrants, the filing said. However, the issuance of the warrants is subject to the approval from shareholders and other statutory approvals, it added.

Following the announcement, shares of GE Engineering touched upper circuit of 5 per cent, at Rs 11.31. The script had settled at Rs 10.78 on Friday. The stock has surged about 25 per cent in the month of August so far, while the stock has surged more than 160 per cent from its 52-week low at Rs 4.34 hit a year ago.

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For the quarter ended on June 30, 2023, GI Engineering reported a manifold rise in the net profit and revenue from operations at Rs 0.94 crore and Rs 93.91 crore, respectively. EBITDA for the quarter came in at Rs 0.95 crore for the first three months of the ongoing financial year.

GI Engineering is conventionally an engineering design company specializing in civil engineering activities and ancillary services. It subsequently ventured into a wide range of civil engineering services including land planning, land surveying and ;landscape architectural services among others.

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