Gensol Engineering Slumps by 8% as CFO Resigns
Gensol Engineering is down by 8.2% on March 7.
Gensol Engineering Slumps by 8% as CFO Resigns
Shares of Gensol Engineering continued its loss-running spree for the fourth consecutive trading session on March 7. The stock fell by another 8.2% to clock a lifetime-low of ₹307. In the past 4 sessions, stock has hit by 40.50%.
The recent downfall in the reviewed session can be attributed to the resignation announced by the company’s Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), Ankit Jain. The resignation comes at a time when the company is reporting delays in servicing its term loan obligations and allegations of misrepresenting debt servicing documents. Brokerages like ICRA and CARE have downgraded the stock.
As per an exchange filing on March 7, the company appointed Jabirmahendi Mohammedraza Aga as the Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), effective March 7, 2025.
Recent Developments
While addressing the downgrades, the company stated that it would be reducing its debt via a series of asset divestments. Currently, debt stands at ₹1,146 crore against reserves of ₹589 crore.
Acknowledging the credit rating downgrades, recent downgrades can be attributed to a short-term liquidity mismatch. However, it’s improving via customer payments.
“That said, we understand the concerns these downgrades have raised and are committed to addressing them responsibly for all our stakeholders,” the company said in a statement.
Stressing on its commitment to accountability, transparency, and sustainable business practices, the firm denied involvement in “falsification claims” and announced the formation of a committee to comprehensively review the matter.
“In the current financial year, we have reduced our debt obligation by ₹230 crore,” the company stated, adding that it has initiated a series of asset divestments to significantly lower its debt.
The recent measures include sale of 2,997 electric vehicles worth ₹315 crore and the divestment of a wholly owned Gensol subsidiary for ₹350 crore. Following the aforementioned measures, debt is expected to reduce by ₹665 crore, bringing the debt-equity ratio down to 0.8.
