Gensol Engineering promoter trims shareholding to reduce company’s pledged shares

Stock Market Today: Gensol Engineering promoter has trimmed his shareholding to reduce company’s pledged shares as per the release by Gensol on the exchanges

Gensol engineering informed the exchanges on Tuesday 18 February 2025 about the Promoter Share Sale to Reduce Pledged Shares and Boost Stability

In Its Release Gensol Engineering said that the recent sale of 2,15,000 shares by Anmol Singh Jaggi is a strategic step aimed solely at reducing the quantum of pledged shares, thereby reinforcing the company’s financial stability. This transaction represents less than 1% of the total promoter shareholding, as per the company.

The transaction of share sale as per Gensol Engineering will significantly reduce the promoter’s pledge and move the company toward its goal of becoming pledge-free. The shares have been sold to reputed long-term investors, added Gensol.

As of December 31, 2024, promoter pledge stood at 81.7%, largely collateralizing long-term debt from IREDA and PFC for the EV leasing business, as well as Loan Against Shares (LAS). The proceeds from this share sale will be utilized entirely to release pledged shares and repay associated loans, with no other underlying objective.

Promoter Pledge Details: Promoters have pledged 1.01 crore shares with IREDA and PFC to secure long-term debt for the EV leasing business, as per Gensol. Following a transaction with Refex Mobility for the sale of EV vehicles, 0.26 crore pledged shares will be released, it added. Gensol Engineerin also said that its is trying to work on similar transactions for EV car sales, to ensure the complete release of the 1.01 crore pledged shares.

Loan Against Shares Details: Promoters have pledged 0.89 crore shares as Loan Against Shares (LAS), as per Gensol. Thus the repayment from the aforesaid share sale will partially pay the LAS lender, reducing the pledged shares and strengthening the company’s financial position, said Gensol in its release.

Total Promoter Shareholding: Promoters collectively own 2.38 crore shares which represent 62.5% of the company shareholding This demonstrated promoters long-term commitment to the business, said Gensol.

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