Penny Stock Hit 5% Upper Circuit On Fund Raising of Rs 75 Cr Via Warrants

GI Engineering Solutions is a small cap company dealing in the construction sector. The stock opened today on the BSE at Rs 11.31 apiece and locked in upper circuit limit of Rs 11.87 or 5% up over the previous close of Rs 11.31. According to a stock exchange filing, the company aims to raise Rs 75 crore through the issuance of warrants.

The company has approved 5 Cr fully convertible warrants, carrying a right exercisable by the warrant holder to subscribe to one equity share having a face value of Rs. 10/- per warrant, to persons belonging to 'Non-Promoter, Public Category' on a preferential basis at an issue price of Rs. 15/- per warrant.

The Board of Directors of GI Engineering Solutions has appointed Ms. Suchitra Krishnamoorthi, Mr. Ketan Chandrakant Mehta as non-executive, independent directors of the company w.e.f. August 19, 2023.

The company recorded a net income of Rs 93.79 Cr in Q1FY24 up by 367,720.78% YoY from Rs 0.02 Cr reported in Q1FY23. Its net profit reached Rs 0.9403 Cr in the June 2023 quarter up by 9,597.98% YoY from a net loss of Rs.-0.0099 Cr reported in the same quarter of FY23.

On Tuesday, the shares of GI Engineering Solutions were trading at Rs 11.87 apiece on the BSE while writing this copy. The stock made a 52-week-high of Rs 38.28 on (19/05/2023) and a 52-week-low of Rs 4.34 on (22/08/2022), indicating that at the current market price, the stock is trading 69% below the 1-year high and 173.50% above the 1 year low. On a YTD basis, the stock has generated a multibagger return of 148.33% so far in 2023 and in the last 6 months, it has generated a multibagger return of 125.67%. During Q1FY24, the company recorded promoters shareholding of 40.89%, FIIs stake of 0.29%, and public stake of 58.83%.