India’s manufacturing sector is poised for further improvement, driven by increasing infrastructure capex and government schemes for MSMEs to stimulate economic activities. The manufacturing PMI for July declined to 57.7, but remained above the expansion threshold of 50, according to a PTI report.
GG Engineering, a manufacturer of infrastructure and structural steel, has announced a rights issue of equity shares in response to rising demand from domestic and export markets. A rights issue allows existing shareholders to purchase additional shares at a discounted price proportional to their current holdings.
As per an exchange filing, over 49 crore equity shares with a face value of Re 1 each will be allotted at a price of Re 1 each.
Despite the impact of the pandemic, production lines in the manufacturing sector have remained active, with an increase in new orders leading to greater output. Businesses are actively seeking opportunities in the market to raise funds and enhance production. In line with this, GG Engineering has secured a fresh order worth Rs 21 crore for the supply of iron raw material.
Furthermore, there has been a noticeable increase in demand for heavy steel across various industries. The infrastructure and real estate sectors in India are particularly seeking innovative materials, resulting in a surge in demand for steel.
The BSE-listed stock of GG Engineering aims to take advantage of this opportunity by gaining better control and finding economies in both upstream and downstream functions within the value chain.
According to the PTI report, businesses have responded to the increased workload by expanding their workforce significantly. Job creation has been consistent with the levels seen in May and June. In terms of inflation, the pressure on costs has remained relatively subdued in July.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
