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Gensol Engineering’s shares gained attention following downgrades by credit rating agencies CARE and ICRA on the company’s various credit ratings
Gensol Engineering Shares Decline
Gensol Engineering Share Price: Shares of Gensol Engineering, a solar power engineering company, hit their 5% lower circuit limit at Rs 289.90 on the BSE in early trade on Tuesday, March 11, following the announcement of a Rs 28.99 crore infusion by the company’s promoters through the conversion of warrants into equity.
In a regulatory filing, Gensol Engineering (BSE: 542851 | NSE: GENSOL) revealed that its promoters are reinforcing their long-term confidence in the company by injecting Rs 28.99 crore via the conversion of warrants into equity. A total of 4,43,934 equity shares will be issued at Rs 871 per share, which will strengthen the company’s capital base to support its strategic growth in renewable energy and electric mobility.
Additionally, the company’s board is set to discuss options for a stock split and other fundraising avenues, including equity issuance and foreign currency convertible bonds, during its upcoming meeting on March 13.
In the previous session, the stock had declined by 5% to Rs 305.15 on the BSE, with the company’s market capitalization falling to Rs 1,159.64 crore. A total of 1.53 lakh shares were traded, amounting to a turnover of Rs 4.74 crore on the BSE.
Over the past 10 trading sessions, the stock has plummeted by 60%. The recent fall follows the promoters’ sale of a 2.3% stake in the company, amounting to 9 lakh shares.
Gensol Engineering’s shares gained attention following downgrades by credit rating agencies CARE and ICRA on the company’s various credit ratings. Shortly after, Gensol Engineering announced the resignation of its CFO, who left to pursue external opportunities.
Additionally, the stock is now under the Additional Surveillance Measure (ASM) Stage 1.
The ASM framework, implemented by SEBI (Securities and Exchange Board of India) and the stock exchanges (NSE & BSE), aims to reduce excessive volatility, prevent speculative trading, and safeguard retail investors from market manipulation.
Gensol Engineering is part of the Gensol Group, which provides engineering, procurement, and construction (EPC) services for the development of solar power plants.
