Gensol Engineering share price in focus as promoters offload 2.37% stake to unlock liquidity

Gensol Engineering had an eventful day on Friday as the company declared it would re-appoint Jabirmahendi Aga as its new Chief Financial Officer (CFO) immediately. This announcement injected fresh buying in Gensol Engineering share price as the stock rebounded from the 52-week low of ₹307.25 apiece on the NSE, made during Friday morning deals. Gensol Engineering’s share price finally ended at ₹327 per share, recording around a 6.50 per cent rise from the 52-week low. However, the company surprised Dalal Street ahead of the market close when it declared a board meeting on 23 March 2025 to consider and approve the proposal for a 1:10 stock split and raise funds by issuing fresh equities. However, the company management didn’t end here only. The company made another announcement as promoters declared offloading their 2.37% stake to unlock liquidity and reinvest in the business.

Gensol Engineering informed the Indian stock market exchanges about the liquidity unlocking move, saying, “The promoters have sold approximately 2.37% of total equity shares of the company, amounting to 9,00,000 shares, to unlock liquidity that will be reinvested into the business through equity infusion. This step is part of a strategy to reinforce the company’s balance sheet and support stability.”

Further underscoring their commitment, the promoters will infuse the exact amount received through this sale or more amount in the warrant subscription round executed on June 18, 2024, thereby providing additional growth capital to the company.

Following this transaction, the promoters hold a substantial 59.70% stake, reflecting their steadfast dedication to Gensol’s journey of delivering value to all stakeholders while driving the clean energy transition forward.

According to the previous LiveMint report, the Ahmedabad-based Solar plant construction company faces the challenge of repaying one of its largest lenders, the Indian Renewable Energy Development Agency (IREDA). However, an IREDA spokesperson has clarified that Gensol’s loans have not become non-performing.

Gensol’s financial challenge surfaced publicly on 3 March, when Care Ratings Ltd downgraded its ₹716 crore bank loan to default, citing delays in “servicing of term loan obligations”. The following day, Icra Ltd downgraded the loans to default, stating the company “apparently falsified” information about its debt servicing.

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