Gensol Engineering slides for 13th straight day, stock down 65% in 2025

Shares of Gensol Engineering Ltd. extended their fall to the 13th consecutive day as the stock was locked in the 5-per cent lower circuit on Thursday, ahead of a major board decision that might give relief to the battered stock. 

 

The counter has fallen by 65 per cent so far this year and by nearly 80 per cent since its previous peak in February last year as a slew of negative news has hit the stock. 

 

The smallcap company's stock plunged as much as 5 per cent during the day to hit a lower circuit of Rs 262 per share, compared to a 0.24 per cent advance in Nifty 50 as of 10:00 AM. The shares were locked in the lower circuit for the fourth straight day. 

 

In an exchange filing on Tuesday, Gensol Engineering announced the resignation of its chief financial officer. It said that Ankit Jain has resigned for personal reasons and intends to explore other career opportunities. It also said that there are no additional significant factors behind his decision to resign. 

 

The board will also consider the proposal for alteration in the share capital of the company by way of sub-division/ split of the existing equity shares of the face value Rs 10 each.

 

Meanwhile, the company's board of directors of the company will meet on Thursday, March 13, 2025, to consider and approve the proposal of raising of funds by way of issuance of equity shares or any other eligible securities through permissible modes, including qualified institutional placement (QIP), preferential issue or any other methods.   ALSO READ: ONGC, Oil India, RIL gain upto 2% as Oilfields bill passed in Lok Sabha

 

The downfall of the stock came after credit rating agencies ICRA and Care Ratings downgraded Rs 2,050 crore of Gensol's debt to default status. The action came on the back of the feedback received by these rating agencies from the company's lenders about the ongoing delays in debt servicing.

 

In an exchange filing, Gensol clarified that the rating downgrades happened due to short-term liquidity mismatch, which is improving by way of customer payments. "That said, we understand the concerns these downgrades have raised and we are committed to addressing them responsibly to all our stakeholders." 

 

 

Earlier this week, the company infused Rs 28 crore in the firm through the conversion of warrants into equity. These warrants would subsequently be converted into 4.43 equity shares at a price of Rs 871 per share.

 

Gensol Engineering operates in the renewable energy sector, specializing in solar power engineering, procurement, and construction (EPC) services, as well as innovative electric mobility solutions.