GG Engineering board approves merger with Integra Essentia. Details here

The company board of GG Engineering has granted in-principal approval for  for evaluating the consolidation proposal of the company with Integra Essentia. Both the listed company informed about the same through separated exchange filings with the bourses on Wednesday. "The board believes that such consolidation would create a larger and stronger entity, subject to statutory, regulatory and other approvals including relevant third-party consents. This will help to pool in the experience, expertise, resources and client base of the two companies and offer a larger bouquet of life essential products, FMCG goods, energy & infrastructure products," it said. Following the update, shares of Integra Essential were locked in the lower circuit of 5 per cent to Rs 7.05 on Thursday, with a total market capitalization of Rs 322.21. The scrip had settled at Rs 7.42 in the previous trading session. The stock has gained about 45 per cent in the last three weeks. However, shares of GG Engineering gained about a per cent to Rs 1.19 on Thursday, commanding a total market capitalization of close to Rs 105 crore. The scrip had settled at Rs 1.18 in the previous trading session on Wednesday. Further, the Integra Essentia is seeking to appoint a Big4 advisory firm for evaluating the aforesaid proposed consolidation from tax and regulatory perspective. "Subsequently, the board delegated powers to the officers/KMP’s of the company to evaluate the consolidation in consultation with the advisors," Integra Essentia added. The board of Integra Essentia also considered and approved the redemption of debentures which were originally issued by the company on July 01, 2013 as per the offer negotiated with the NCDs holder for a lump-sum payment of at Rs 1.50 crore towards full and final settlement/redemption of the entire 2845 Unsecured, non-convertible Redeemable Debenture of Rs 1 lakh each, it said. New Delhi based Integra Essentia recently bagged fresh orders valued from Himalayan Bio Organic Foods and Sarveshwar Overseas for supplying premium rice and cashew nuts to an exporter Ayush International.