Gensol Engineering stock in focus as promoters divest 2.37 per cent stake to ‘unlock liquidity’

This step is part of a strategy aimed at reinforcing the company's balance sheet and supporting stability, the company said in a statement

New Delhi: Shares of Gensol Engineering are in focus as the promoters of the company have sold 9 lakh shares or nearly a 2.37 percent stake to unlock liquidity that will be reinvested into the business through equity infusion. However, the counter declined more than 4 per cent on Monday. Gensol Engineering’s stock went lower by 4.32 pc to Rs 308 apiece on the National Stock Exchange (NSE). On the BSE, the scrip of the company fell 4.10 pc to Rs 308 apiece.

The promoters have divested 2.37% of their total equity—equivalent to 9,00,000 shares—with the intent of channeling these proceeds back into the business through equity infusion. Reinforcing their commitment to Gensol’s future, the promoters will reinvest the same or a greater amount through the warrant subscription round at Rs 871 per share, providing additional growth capital to drive expansion and innovation in the renewable energy sector.

The market is trading in the positive zone. The 30-share BSE Sensex climbed 279.52 points or 0.38 per cent to 74,612.10 in the late morning trade. Also, the NSE Nifty advanced by 82.70 points or 0.37 per cent to 22,635.20.

In a regulatory filing on Friday, Ahmedabad-based Gensol Engineering said that

This step is part of a strategy aimed at reinforcing the company’s balance sheet and supporting stability, the company said in a statement

Further, the promoters will infuse the same 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.

After the stake sale, Gensol’s promoters will continue to hold a 59.70 per cent shareholding in the company, it added.

Established in 2012, Gensol Engineering specialises in solar power engineering, procurement, and construction (EPC) services, along with cutting-edge electric mobility solutions.

Meanwhile, the bearish trend in the Indian stock market continues into the new week, as both indices opened almost flat with mixed trends on Monday.

The Nifty 50 index opened at 22,521.85, declining by 30.65 points or 0.14 percent, while the BSE Sensex opened at 74,474.98, registering a marginal gain of 142.40 points or 0.19 percent.

Experts noted that ongoing global tensions, such as the cycle of Trump threatening, levying tariffs, rolling them back, and then threatening afresh, are spoiling market sentiment and rapidly eroding U.S. goodwill and soft power.

(With PTI inputs)