Gensol Engineering shares hit upper circuit as company signs MoU with Gujarat govt

Shares of Gensol Engineering Ltd hit upper circuit limit on Tuesday after the company announced signing a memorandum of understanding (MoU) with Gujarat Government for EV manufacturing. The company informed about the same during the trading hours on Tuesday.

Gensol Engineering announced a partnership with the Government of Gujarat for India's path towards a sustainable future, said the company. It has signed a MoU for an investment of Rs 2,000 crore for an electric vehicle (EV) manufacturing facility for Gensol EV, poised to generate around 1,500 green jobs in the region, it said.

The proposed EV manufacturing plant will be catering to both commercial and personal vehicle space. It will be a collective endeavor both The Government of Gujarat and Gensol Engineering, propelling EV ecosystem towards a cleaner and greener future, in line with the net zero commitment by year 2070

Following the announcement, shares of Gensol Engineering surged 5 per cent, hitting the upper circuit limit, at Rs 843.75 on Tuesday, commanding a total market capitalization of more than Rs 3,200 crore. The scrip had settled at Rs 803.60 in the previous trading session on Monday.

"We extend our sincere gratitude to the Government of Gujarat for their invaluable collaboration and support. Our profound thanks for fostering an environment that aligns with our vision for revolutionizing the ever-growing EV landscape," said Anmol Singh Jaggi, Co-founder of Gensol Group.

"The Rs 2,000 Crore investment stands as a testament to our confidence in the state's commitment to sustainable growth and green manufacturing. We look forward to a mutually beneficial partnership that propels Gujarat to new heights in the EV revolution," he added.

Earlier this month, Gensol Engineering announced that it has been awarded a contract for a 33 MW AC solar power project by Sarda Energy & Minerals (SEML), a steel producer and India’s top exporter of ferro alloys, which was valued at Rs 138.72 crore and shall be completed within a 6-month timeline.

The company will be hosting its extra-ordinary general meeting (EGM) on Thursday, January 25, 2024 to take approval of the shareholders for the fundraising plans. The company board of Gensol Engineering had approved to raise up to Rs 300 crore via qualified institutional placement (QIP) route, public issue, preferential allotment, and private placement.

Gensol Engineering offers engineering, procurement, and construction (EPC) services for the development of solar power plants. Gensol has successfully installed solar power plants with combined operations, and has also established a cutting-edge electric vehicle (EV) manufacturing facility in Pune, India.

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