Gensol Engineering Ltd has announced that its Board of Directors will meet on March 13, 2025, to discuss a potential fundraising through a Qualified Institutions Placement (QIP). The decision is aimed at strengthening the company’s financial position and funding expansion plans.
This move comes in the wake of recent credit rating downgrades by CARE Ratings and ICRA, which cited delays in servicing loan obligations and concerns over financial disclosures. Gensol has denied any involvement in falsification of data and has initiated an internal probe to address these concerns.
Stock Performance
Despite the negative sentiment surrounding the company’s financials, shares of Gensol Engineering Ltd rebounded sharply by 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
Purpose of QIP
The company is exploring various fundraising options, including:
- Equity dilution through institutional investors
- Debt refinancing to improve liquidity
- Investment in renewable energy and EPC projects
The QIP route will allow Gensol to raise capital efficiently without increasing its debt burden. However, the pricing and details of the QIP issuance will be finalized post-Board approval.
Challenges and Outlook
The company is currently under pressure due to credit rating downgrades and delays in loan payments. Additionally, the recent CFO resignation has added uncertainty, but the appointment of Jabirmahendi Aga as the new CFO signals an effort to restore stability.
With the upcoming March 13 Board meeting, investors will closely watch Gensol’s strategic decisions regarding capital infusion, business outlook, and credit rating improvements.
