Gensol Engineering tanks 58% in 1 month; promoters offload 2.37% stake

Gensol Engineering share price was down 4% to Rs 308 on the NSE in Monday's intra-day trade after the promoter of the company, on Friday, March 7, sold 900,000 shares or 2.37% stake via open market

Gensol Engineering share price was down 4 per cent at Rs 308 on the National Stock Exchange (NSE) in Monday’s intra-day trade after the promoter of the company, on Friday, March 7, sold 900,000 shares or 2.37 per cent of the total equity shares via the open market. The company said the shares were sold to unlock liquidity that would be reinvested into the business via equity infusion.

 

Meanwhile, as per NSE bulk deal data, Anmol Sing Jaggi, among the promoters of the company, had sold 800,000 shares at a price of Rs 320.01 per share. While Shirish Kishor Sanke had sold 295,330 shares of Gensol at a price of Rs 326.95 per share, data shows. 

 

 

In the past one month, the stock price of the smallcap company has tanked 58 per cent from the level of Rs 742.05 on the NSE. The stock had hit a 52-week high of Rs 1,124.90 on June 24, 2024. It had hit a 52-week low of Rs 307.25 on Friday, March 7, 2025.  At 09:40 AM, Gensol Engineering share was trading 2 per cent lower at Rs 314.70, as compared to the 0.43 per cent rise in the NSE Nifty. A combined nearly 1 million equity shares have changed hands on the NSE and BSE.

 

A leader in renewable energy and electric mobility solutions, the company said its promoters have undertaken a purposeful initiative to further fortify the company’s financial foundation and ensure sustained growth. The company said this step is a part of a strategy aimed at reinforcing its balance sheet and supporting stability.

 

The promoters will infuse the same amount received through this sale or more in amount in the warrant subscription round executed on June 18, 2024, thereby providing additional growth capital to the company.  ALSO READ: Alembic Pharma down 3% on getting USFDA observation for its Vadodara plant

 

Meanwhile, Gensol said the 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.

 

To 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, in the past one week, the stock price of Gensol has plunged 40 per cent after credit rating agencies, CARE Ratings and ICRA, downgraded the company's credit ratings. The action follows feedback received by the rating agencies from the company's lenders about the ongoing delays in debt servicing. 

 

Gensol, in an exchange filing, said 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," the company said.

 

CARE Ratings has downgraded the company's ratings on long-term and short-term loan facilities due to the on-going delays in the servicing of term-loan obligations.  ALSO READ: IndusInd Bank down 5%; Analysts cut target on 1-yr extension to Kathpalia

 

"As per the feedback from Gensol's lender, there have been delays in debt servicing by Gensol Engineering, along with pending over dues and SMA classification of the account. The liquidity situation at the company remains poor," it said in a statement. CLICK HERE FOR DETAILS

 

ICRA, meanwhile, said the ratings for the bank facilities of Gensol Engineering have been downgraded to [ICRA]D following the feedback received by the rating agency from the company's lenders.

 

While the company has delayed its debt servicing obligations as per the feedback received from the lenders, it had, in its latest public disclosures as well as in its recent communications with ICRA, highlighted sizable available liquidity to support its operations during its ongoing growth phase.

 

ICRA said it has now learnt that certain documents shared by Gensol Engineering with ICRA, on its debt servicing track record, were apparently falsified, which raises concerns on its corporate governance practices, including its liquidity position. CLICK HERE FOR DETAILS