Shares of troubled entity Gensol Engineering Ltd shall remain in focus during the trading session on Wednesday after its chief financial officer (CFO) resigned from the company. The company informed about the same through an exchange filing with the bourses after the trading hours on Tuesday.
Ankit Jain, CFO of Gensol Engineering has resigned from his position citing personal reasons. Jain intends to explore other career opportunities outside the company. The resignation will be effective from March 13, 2025, as the company ensures compliance with Sebi regulations.
This decision was communicated through his resignation letter, which confirms that there are no additional significant factors influencing his resignation. This recent announcement ensures compliance with the requirement to submit the resignation letter within seven days of the effective resignation date, as specified in the regulations.
Shares of Gensol Engineering settled at Rs 289.90 on Tuesday. after hitting the lower circuit of 5 per cent for the day. The stock has corrected nearly 75 per cent in just nine months from its peak at Rs 1,125.75 hit in June 2024. The total market capitalization of the company is little more than 1,100 crore. The stock is down 65 per cent on a year-to-date (YTD) basis.
Shares of Gensol Engineering has been in focus since the beginning of this month since the rating agencies CARE Ratings and ICRA downgraded the ratings for its bank loans for both short-term and long-term. ICRA downgraded the loans to 'D' grade, standing for default status, which means that the company may not fulfil its loan obligations.
Also, it is noted that company had falsified documents regarding its debt servicing track record, raising doubts about its financial transparency. Further, Gensol's unexecuted order book, which consists of 10-11 large projects, is at risk due to execution delays, regulatory approvals, and potential cost overruns.
Earlier this week, the promoters of the company sold 2.3 per cent stake, or 9,00,000 equity shares of the company. However, Gensol Engineering on Tuesday said its promoters have infused Rs 29 crore through the conversion of warrants into equity. The company stated that the warrants would be converted into 4,43,934 equity shares at a price of Rs 871 per share, said the filing.
Shares of Gensol Engineering are put under Additional Surveillance Measure (ASM): Stage 1. The ASM framework was introduced by SEBI and stock exchanges to curb excessive volatility, and speculative trading, and protect retail investors from market manipulation, implying that the stock shows high volatility, abnormal price movement or excessive speculation and regulatory measures.