Shares of Gensol Engineering Ltd slipped for the 11th straight session on Tuesday even as the renewable energy firm said its promoters have infused Rs 29 crore through the conversion of warrants into equity. Gensol Engineering shares fell 5% to a fresh 52 week low of Rs 289.90 against the previous close of Rs 305.15 on BSE. Market cap of the firm slipped to Rs 1,101.64 crore. Total 0.21 lakh shares changed hands amounting to a turnover of Rs 62.72 lakh on BSE.
A R Ramachandran, SEBI registered Independent analyst says, "Gensol Engineering is oversold and also bearish on the Daily charts with strong resistance at Rs 322. A daily close below the support of Rs 273 could lead to a target of Rs 215 in the near term."
In a filing to the stock exchanges, the company stated that the warrants would be converted into 4,43,934 equity shares at a price of Rs 871 per share.
"This step reaffirms the promoters’ deep-rooted commitment to Gensol’s strategic expansion in renewable energy and electric mobility, ensuring the company is wellcapitalized. This investment follows a recent strategic decision by the promoters to unlock liquidity through an equity stake sale with proceeds reinvested into the company," said the firm
The stock has fallen 50% in the last 11 sessions.
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 last week.
Long-term bank facilities of the company worth Rs 639.70 crore have been downgraded to CARE D from CARE BB+; stable.
Similarly, ratings for long term/ short term bank facilities worth Rs 76.30 have been lowered to CARE D/CARE D from CARE BB+; Stable/CARE A4+, said Gensol Engineering.
"CARE Ratings Limited has revised the ratings assigned to the bank facilities of Gensol Engineering Limited (GEL) on account of on-going delays in the servicing of term loan obligation as per feedback from its lenders. The rating action is in line with CARE’s policy on default recognition," said the firm.
ICRA too downgraded its credit rating for Gensol Engineering last week.
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.