Gensol Engineering Share Price Hits 52-Week Low on Apr 4—What’s Driving the Decline?

Gensol Engineering Ltd experienced significant volatility in today’s trading session, hitting a new 52-week low of ₹150.10 before rebounding to its upper circuit limit of ₹165.90. The stock surged by 5% intraday, with trading volumes spiking over 5.34 times the average, indicating heightened market activity.

Credit Rating Downgrade and BluSmart Concerns Weigh

On March 4, CARE Ratings downgraded Gensol Engineering Ltd’s long-term and short-term bank facilities due to delays in servicing its term loan obligations. Since then, the stock has plunged 66%, hitting lower circuits in most trading sessions.

A day later, ICRA further downgraded the company’s credit rating, adding to investor concerns. Additionally, Gensol’s close association with BluSmart Mobility—currently undergoing a major restructuring—has intensified negative sentiment.

The exit of key executives, including BluSmart’s CEO, has raised doubts about its stability, indirectly impacting Gensol’s market outlook and eroding investor confidence.

Refex Green Cancels Gensol EV Deal 

Refex Green Mobility has decided to withdraw its plan to acquire 2,997 electric vehicles (EVs) from Gensol Engineering, a deal initially valued at approximately ₹315 crore. In a joint statement, both companies cited evolving commitments that would make it difficult to finalise the transaction within the planned timeframe.

The partnership, announced on January 16, was intended to transfer these EVs to Refex, which would then lease them to BluSmart—a company founded by Gensol Engineering’s promoters, as per news reports. However, with the deal now scrapped, uncertainties around BluSmart’s future operations continue to impact market sentiment.

Conclusion

Gensol Engineering’s stock has been under significant pressure due to multiple factors, including credit rating downgrades, concerns surrounding BluSmart Mobility, and the cancellation of its EV deal with Refex Green Mobility.

The volatility in its share price, coupled with investor concerns over financial stability and business outlook, has kept market sentiment cautious. Moving forward, investors will closely watch the company’s financial performance, strategic developments, and any further impact from BluSmart’s restructuring.

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