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Gensol Engineering has approved raising ₹600 crore and a 1:10 stock split to improve liquidity and attract retail investors. The company plans to raise ₹400 crore via Foreign Currency Convertible Bonds (FCCBs) and ₹200 crore through warrants to promoters. The stock split will make shares more affordable.
The fundraising aims to reduce Gensol’s debt from ₹1,146 crore to ₹530 crore, improving its debt-equity ratio, which currently stands at 1.95. This step is expected to strengthen its financial stability and investor confidence.
However, Gensol’s stock has dropped 55% over 13 sessions, creating concerns. Credit rating agencies, CARE and ICRA, flagged delays in debt servicing and governance issues. The company formed a special committee to address these matters, reinforcing its commitment to better practices.
These actions reflect Gensol’s strategy to restore market trust, improve financial health, and secure long-term growth in a competitive environment. By addressing current challenges and focusing on improvement, the company aims to navigate difficult times successfully while retaining investor interest.
