GI Engineering shares hit upper circuit after addition of new business division

Shares of GI Engineering Solutions hit upper price band during Wednesday's trade after the company announced the addition of a new business division. Under the new division, the company will venture into the business of film production, distribution and allied services.

The company has announced its partnership with Bollywood director and writer Farhad Samji for the sequel of the iconic film 'Haseena Maan Jayegi', titled as 'Haseena Maan Jayegi 2’ as its first project under its new division, the company said in the media release on Wednesday. "The sequel of ‘Haseena Maan Jayegi’ is produced by the company," it said.

Samji has been associated with some of the Bollywood hits including 'Housefull 4', 'Housefull 3', Entertainment, Sooryavanshi, 'Singham Returns' and 'Baaghi 3' as writer or director.

Following the announcement, shares of GI Engineering Solutions hit an upper circuit of 5 per cent to Rs 12.46 on Wednesday, before giving up its gains partially. The stock had settled at Rs 11.87 on Monday. The stock has surged about 30 per cent in the month of August so far, while the stock has surged more than 190 per cent from its 52-week low at Rs 4.34 hit a year ago.

The company has on-boarded Smita Thackeray, who was the producer of the first installment of the movie, as the chairperson of the advisory board of the company. The company is also onboarding names like Mohaan Nadaar and Ketki Pandit in its board as members.

Earlier this month, the company board had also 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 is looking to raise Rs 75 crore through the issue of these warrants. However, the issuance of the warrants is subject to the approval from shareholders and other statutory approvals, it added.

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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