Gensol Engineering to review stock split and fundraising on March 13; shares fall 4% as promoters sell 2.37% stake

Gensol Engineering Limited's stock slipped 4.38% to ₹308 per share on the NSE on Monday, March 10, 2025, after a week of major developments. The company has been facing pressure due to recent credit rating downgrades and a promoter stake sale, leaving investors on edge.

Promoters sell stake but stay committed

On March 7, 2025, the promoters offloaded 2.37% of their equity, selling 9,00,000 shares. But this was not an exit move, it was a strategic decision to unlock liquidity, with plans to reinvest the proceeds back into the company. The promoters still hold a strong 59.70% stake, reaffirming their commitment to Gensol's long-term growth.

The funds raised will be injected back into the company during the upcoming warrant subscription round on June 18, 2025. This step is part of a broader plan to reinforce Gensol's financial stability as it pushes forward with its clean energy vision.

Board meeting: Stock split and fundraising on the table

Gensol Engineering has scheduled a board meeting on March 13, 2025, to discuss:

• Raising funds through equity shares or other eligible securities, subject to approvals.
• A potential stock split—the board will consider dividing existing shares with a face value of ₹10 per share, making them more accessible to retail investors.
• Calling an extraordinary general meeting (EGM) to finalise these plans.

A stock split could boost liquidity and attract more investors, making Gensol's shares more approachable.

Credit downgrades and liquidity concerns

The stock has tumbled nearly 40% in the past week after CARE Ratings and ICRA downgraded Gensol Engineering due to liquidity concerns. This raised caution among those looking to invest in stocks.

• CARE Ratings downgraded the company's long-term bank facilities worth ₹639.7 crores from "CARE BB+" to "CARE D", citing liquidity issues.
• ICRA followed suit, downgrading Gensol's bank facilities to [ICRA]D, raising concerns over corporate governance and debt servicing inconsistencies.

These downgrades have rattled investors, but Gensol remains optimistic, citing a short-term liquidity mismatch that it expects to resolve through customer payments and asset divestments.

What's next for Gensol?

Gensol Engineering's upcoming board meeting could be a turning point. With plans for a stock split and fresh fundraising, the company aims to regain investor confidence and strengthen its financial position. 

On March 10, 2025, at 12:30 PM, the Gensol stock was trading at ₹305.80 per share. For those eyeing investments in the renewable energy space, Gensol's next moves could shape the stock's trajectory in the coming months. This makes it a key watch for those looking to invest in stocks.