Gensol Engineering Board Approves Stock Split and ₹600 Crore Fundraising

Gensol Engineering Ltd has received board approval for a 1:10 stock split and a ₹600 crore fundraising through the issuance of warrants and foreign currency convertible bonds. These moves come as the company faces financial strain, including loan repayment concerns and 

a recent credit rating downgrade.

Stock Split and Capital Expansion

The board has approved the subdivision of equity shares, reducing the face value from ₹10 to ₹1 per share. This will increase the authorised share capital from 7.5 crore to 75 crore shares, while the issued, subscribed, and paid-up capital will rise from 3.84 crore to 38.4 crore shares. The stock split is expected to take effect within three months of shareholder approval.

Additionally, the company will raise ₹400 crore through foreign currency convertible bonds, American depository receipts, global depository receipts, or other global securities with an option for equity conversion. The board has also approved a ₹199.99 crore private placement by issuing 3.57 crore warrants at ₹56 per share to promoter Jasminder Kaur, marking a 113% ex-split premium.

Financial Struggles and Market Impact

Gensol’s stock has been under pressure, hitting the lower circuit for four consecutive days. The announcement of the stock split and fundraising came while the shares were locked in a 5% lower circuit.

Since February 24, the stock has been on a downward trend as credit rating agencies ICRA and CARE Ratings flagged concerns over delayed term-loan repayments and potential falsification of data. Earlier this month, Gensol’s ₹2,050 crore debt was downgraded to default status, including ₹1,640 crore in long-term debt and ₹400 crore in short-term debt.

Gensol Engineering Share Performance

As of March 17, 2025, at 9:55 AM, the shares of Gensol Engineering are trading at ₹249.15 per share, reflecting a lower circuit of 5% from the previous closing price. Over the past month, the stock has registered a loss of 55.95%

Conclusion

Gensol Engineering’s stock split and capital raise are strategic moves amid growing financial stress. 

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