Book value

This small cap is trading below its book value despite a 12% zoom!

So market participants must ask themselves, what’s cooking in the broth!

Gallantt Metal grabs all the spotlight on D-Street on Friday as the stock soared more than 12% on robust volumes. The day’s volumes have already exceeded their previous trading volume and were the highest daily volume since May 13, 2022.

Technically, the stock formed a significant bullish candle and broke above its recent swing high, which was recorded on May 18, 2022.

So market participants must ask themselves, what’s cooking in the broth!

National Company Law Tribunal, New Delhi Bench has approved the merger plan of Gallantt Ispat Limited (GIL), AAR Commercial Company Limited (AAR), Hipoline Commerce Private Limited (Hipoline), Lexi Exports Private Limited (Lexi) and Richie Credit & Finance Private Limited (Richie) with Gallantt Metal Limited (GML) and collapse of the sale of GIL’s power station business to GML (the “Scheme”) under the provisions of Section 230-232 of the companies of 2013.

The board of directors of the company in its meeting held on Thursday, May 26, 2022, has fixed June 7, 2022 as the “record date” for the purposes of the allotment of shares by Gallantt Metal Limited to the shareholders of Gallantt Ispat Limited on its merger with Gallantt Metal Limited pursuant to the plan of merger approved by the National Company Law Tribunal, Kolkata and New Delhi Bench void their respective orders dated September 22, 2021 and May 20, 2022, respectively

Pursuant to the Plan of Merger, Gallantt Metal Limited will issue and allot to shareholders of the Company whose names would appear in the register of members on the above record date, 13 fully paid shares of Rs 10 each of Gallantt Metal Limited, for each 14 shares of the paid-up value of Re 1 each held by that member in the company.

The stock has a book value of Rs 94.8 while its current market price is Rs 74. The stock has generated returns of almost 9% over the past year.