Gensol Engineering shares drop 4% after promoters offload 2.37% stake
This move comes after the stock plunged 70% over the last eight trading sessions.
“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 aimed at reinforcing the company’s balance sheet and supporting stability,” Gensol Engineering stated in its filing.
Reinforcing their commitment, the promoters will reinvest the entire amount received from this sale, or even more, during the warrant subscription round on June 18, 2024, thereby ensuring additional growth capital for the company.
After this transaction, the promoters now own a 59.70% stake in the company.
In a separate filing, the board also disclosed plans to consider a stock split and explore fundraising options, including equity issuance, foreign currency convertible bonds, and other financial instruments, during its upcoming board meeting on March 13.Also read: Lupin shares rise nearly 3% on launch of Rivaroxaban Tablets USP, in the USEarlier in the last week, the company also announced the resignation of its Chief Financial Officer (CFO), Ankit Jain, who is being succeeded by Jabirmahendi Mohammedraza Aga.
This update came in after the company received various credit rating downgrades from ICRA and CARE.
Gensol Engineering shares performance
On Friday, Gensol Engineering shares closed at Rs 321.2, down 4.2% on the BSE, while the benchmark Sensex declined 0.01%. The stock has declined 66% in the past six months but surged 290% over the last three years. The company’s market capitalization stands at Rs 1,220 crore.
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