Gensol Engineering Ltd shares are in news today after the company said its board would consider a stock split along with various fundraising options, including equity issuance and foreign currency convertible bonds, in its upcoming meeting on March 13.
The stock is down 40% in a week as ICRA and CARE have given credit downgrades to the company.
In the previous session, the renewable energy stock fell 4.22% to Rs 321.20 on BSE. Market cap of the firm slipped to Rs 1,220.64 crore. Total 8.38 lakh shares changed hands amounting to a turnover of Rs 27.30 crore on BSE.
In a related development, the promoters sold 2.37% of their stake, amounting to 9 lakh shares—in a move they described as unlocking liquidity to reinvest in the business.
In a regulatory filing, the company stated, “The promoters have sold approximately 2.37% of total equity shares of the company, amounting to 9,00,000 shares, to unlock liquidity that will be reinvested into the business through equity infusion. This step is part of a strategy aimed at reinforcing the company’s balance sheet and supporting stability.”
Earlier this week, credit ratings agency CARE Ratings downgraded the company’s long-term and short-term bank facilities due to delays in servicing its term loan obligations. ICRA too downgraded its credit rating for Gensol Engineering.
This led to a 40% correction in the Gensol stock. Gensol Engineering is a part of the Gensol group of companies, which offers engineering, procurement, and construction (EPC) services for the development of solar power plants.