Gensol Engineering Limited has announced a ₹600 crore fund-raising initiative to bolster its financial standing and accelerate its goal of becoming a net-debt zero company. The move, approved by the Board of Directors, is aimed at reducing leverage and maximizing shareholder value.
Breakdown of Fundraising Plan:
- ₹400 crore to be raised via Foreign Currency Convertible Bonds (FCCBs).
- ₹200 crore to be raised through the issuance of warrants to promoters.
This initiative, along with ongoing divestments—including asset sales and the sale of a subsidiary—will significantly improve Gensol’s debt-equity ratio.
Currently, Gensol has a debt of ₹1,146 crore against reserves of ₹589 crore, reflecting a debt-equity ratio of 1.95. With the planned capital infusion and ₹615 crore worth of divestments, the company expects to reduce debt to approximately ₹530 crore and improve its debt-equity ratio to 0.44.
CEO’s Statement
Anmol Singh Jaggi, Managing Director of Gensol, emphasized the company’s commitment to financial discipline, stating,
“Our priority is to strengthen Gensol’s balance sheet, and we are taking bold steps with this fund-raise. This, along with strategic divestments, will position the company for sustained growth and a net-debt zero status.”
About Gensol Engineering
Founded in 2012, Gensol Engineering is a key player in India’s renewable energy sector, specializing in solar power EPC, EV leasing, and manufacturing. The company has executed over 770 MW of solar projects and is expanding into Battery Energy Storage Systems (BESS) and Green Hydrogen infrastructure.
This strategic fund-raise is expected to enhance financial resilience and sustain Gensol’s leadership position in the green energy transition.
