Gensol Engineering Down 4%; Promoters Sell Stake Amid Liquidity Concerns

Shares of Gensol Engineering fell by about 4% on March 10 after the company sold 2.37% of its holdings, which totalled 9 lakh shares. As per the promoters, the sale aimed at “unlocking liquidity” for reinvestment into the business.

However, the stock is already on a declining spree since the past 10 sessions, losing over 47%.

Gensol Engineering said in its filing, “The promoters have sold approximately 2.37 percent 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.”

Issuing a clarification, the company said that proceeds from the stake sale will be utilised during the warrant subscription round scheduled for June 18, 2024. Following the transaction, promoter holding in Gensol Engineering now stands at 59.70%. Notably, the move is aimed at maintaining the company's balance sheet while ensuring stability.

In a separate exchange filing, the company said that its board would meet on March 13 to discuss key strategic measures, including a potential stock split and various fundraising options. The board is expected to raise funds via equity issuance, foreign currency convertible bonds (FCCBs), or other financial instruments. The meeting is set to take place on March 13.

“To consider and approve the proposal of raising funds by way of issuance of equity shares or any other eligible securities (“Securities”) through permissible modes, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the company.

To consider the proposal for alteration in the share capital of the company by way of sub-division/ split of the existing equity shares of the face value ₹10, fully paid-up, in such manner as may be determined by the Board of Directors subject to the approval of the shareholders of the company and any regulatory/ statutory approvals, as may be required under applicable law.

To convey extraordinary general meeting to approve fundraising, sub-division/ split of shares, or any other matter of the company.”Shares of Gensol Engineering fell by about 4% on March 10 after the company sold 2.37% of its holdings, which totalled 9 lakh shares. As per the promoters, the sale aimed at “unlocking liquidity” for reinvestment into the business.

However, the stock is already on a declining spree since the past 10 sessions, losing over 47%.

Gensol Engineering said in its filing, “The promoters have sold approximately 2.37 percent 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.”

Issuing a clarification, the company said that proceeds from the stake sale will be utilised during the warrant subscription round scheduled for June 18, 2024. Following the transaction, promoter holding in Gensol Engineering now stands at 59.70%. Notably, the move is aimed at maintaining the company's balance sheet while ensuring stability.

In a separate exchange filing, the company said that its board would meet on March 13 to discuss key strategic measures, including a potential stock split and various fundraising options. The board is expected to raise funds via equity issuance, foreign currency convertible bonds (FCCBs), or other financial instruments. The meeting is set to take place on March 13.

“To consider and approve the proposal of raising funds by way of issuance of equity shares or any other eligible securities (“Securities”) through permissible modes, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the company.

To consider the proposal for alteration in the share capital of the company by way of sub-division/ split of the existing equity shares of the face value ₹10, fully paid-up, in such manner as may be determined by the Board of Directors subject to the approval of the shareholders of the company and any regulatory/ statutory approvals, as may be required under applicable law.

To convey extraordinary general meeting to approve fundraising, sub-division/ split of shares, or any other matter of the company.”