The board of GG Engineering Ltd has approved a merger plan of the company with Integra Essentia Limited, which is in the steel and renewable energy business. The proposal remains subject to several other necessary approvals, GG Engineering Ltd (GGEL) said in a regulatory filing on September 20.
“We would like to inform that the board of directors have…granted in-principle approval for evaluating consolidation proposal of the company with Integra Essentia Limited (IEL),” the filing said.
The board believes the consolidation would create a larger and stronger entity. It 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 added.
Meanwhile, the board of IEL also gave its nod for the consolidation of the company with GGCL.
Earlier this month, GG Engineering Ltd (GGEL) board had approved fundraising of up to Rs 99 crore through the allotment of convertible warrants on a preferential basis.