The GG Engineering Ltd. board has given the approval for the company to merge with Integra Essentia Limited, which is involved in the steel and renewable energy industries.
GG Engineering said in the regulatory filing on September 20 that the proposal remains subject to several other necessary approvals.
“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.
The board of GG Engineering Ltd (GGEL) approved funding up to Rs 99 crore earlier this month through the preferential distribution of convertible warrants.