Gensol Engineering Ltd has announced that its Board of Directors will meet on March 13, 2025, to discuss a stock split proposal aimed at enhancing liquidity and improving affordability for retail investors.
This decision comes at a critical time when the company is also evaluating fundraising through a Qualified Institutions Placement (QIP) to strengthen its financial position.
Stock Performance & Market Reaction
Despite the ongoing concerns regarding credit rating downgrades and financial stability, Gensol Engineering’s stock rebounded 16% from the day’s low on Friday. As of 3:30 PM, the stock was trading at ₹327.60, down 2.15% from its previous close of ₹334.80.
- Market Cap: ₹12.36 billion
- Day’s Range: ₹307.25 – ₹352.95
- Yearly Range: ₹307.25 – ₹1,124.90
- P/E Ratio: 12.11
- Average Volume: 218.04K
What is a Stock Split?
A stock split increases the number of shares outstanding while reducing the face value per share, making the stock more affordable to small investors. If approved, the split ratio (e.g., 2-for-1, 5-for-1, or 10-for-1) will be decided by the Board.
Possible Benefits of Stock Split:
- Improves Liquidity: Lower stock price attracts more retail participation.
- Enhances Market Accessibility: Retail investors can buy at a more affordable price.
- Potential Increase in Demand: More buyers can lead to higher trading volume and stock appreciation over time.
Challenges and Recent Developments
The stock split discussion comes amid credit rating downgrades by CARE Ratings and ICRA, which cited delays in loan repayments and concerns about financial disclosures. The company has denied any wrongdoing and is conducting an internal investigation into the matter.
Additionally, Gensol recently announced the resignation of CFO Ankit Jain, with Jabirmahendi Aga reappointed as the new CFO, signaling an effort to restore investor confidence.
