Gensol Engineering shares rise as the board approves fundraising plans

Shares of Gensol Engineering Ltd rose about 3 per cent during the early trading session on Tuesday after the company board approved fund raising plans via qualified institutional placement (QIP) and/or other routes. The company informed about the same through an exchange filing on Monday.

The company board of Gensol Engineering met on on Monday, January 1, 2024 to consider and approve to raise up to Rs 300 crore via qualified institutional placement (QIP) route, public issue, preferential allotment, and private placement, the company informed exchanges with the bourses.

"The company board also announced to increase the authorized share capital of the company to Rs 50 crore including 5 crore equity shares with a face value of Rs 10 each, from Rs 40 crore including 4 crore equity shares with a face value of Rs 10 each," added the exchange filing.

Following the announcement, shares of Gensol Engineering gained about 3 per cent to Rs 875.40 on Tuesday, commanding a total market capitalization close to Rs 3,250 crore, before trading flat. The stock was settled at Rs 848.65 in the previous trading session on Monday.

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The company board will host is extra-ordinary general meeting (EGM) for the approval of the shareholders for the fundraising plans, and the notice for the same shall be issued in days to come, it added. Gensol Engineering shares have gained about 230 per cent from its 52-week low at Rs 265.42.

In November 2023, Gensol Engineering had bagged an order from NHPC as it emerged as the lowest bidder for the engineering, procurement and commissioning (EPC) of a trailblazing Green Hydrogen-based mobility station in Kargil, Ladakh. The stock had traded ex-bonus in 2:1 ratio in October 2023.

Founded in 2012, 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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