Know Why Gensol Share Price Declined by 74% YTD

Gensol share price continues to decline fall sharply. It hit another 5% lower circuit today. This adds to the company’s ongoing market difficulties. The share price has now decreased by a staggering 74% year-to-date.

Reasons Behind Gensol’s Share Price Decline 

The Gensol share price decline can be attributed to several negative factors. These include major changes at BluSmart Mobility. BluSmart is a company closely associated with Gensol.

BluSmart Leadership Exodus

BluSmart has experienced a series of high-profile departures. As per news reports, CEO Anirudh Arun has stepped down. Chief Business Officer Tushar Garg has also resigned. Chief Technology Officer Rishabh Sood has left the company. Vice President of Experience Priya Chakravarthy has also resigned.

Nandan Sharma, formerly Vice President of Business and Operations, is expected to become CEO.

Leasing Deal Controversy

BluSmart is restructuring its operations. A leasing deal is now causing investor concern. Gensol Engineering, the parent company, is selling nearly 2,997 electric vehicles. The buyer is Refex Green Mobility, based in Chennai. These vehicles represent about 34% of BluSmart’s total fleet. They will be leased back to BluSmart. The transaction is worth ₹315 crore. It is awaiting regulatory approvals.

Ratings Downgrade and Allegations

Gensol share price decline has accelerated due to multiple credit rating downgrades. This is due to concerns about delays in servicing its term loan obligations. Allegations of falsified debt servicing documents have further eroded investor confidence. The company has denied any wrongdoing. However, it has initiated an internal investigation into the matter.

Gensol Share Price Performance

The Gensol share price performance indicates a negative picture. In the last 5 days, the share price has plunged nearly 20%. The performance over the past month is even worse, with a 63% drop. Over the last 6 months, the stock has tumbled 76%. On a year-on-year basis, it is down 79%. The company’s market capitalisation is now ₹785.84 crore.

Conclusion

Gensol share price decline is due to leadership changes at BluSmart and a controversial leasing deal. Credit rating downgrades and allegations of falsified documents have worsened the situation. The company’s stock has suffered significant losses in recent times.

As of Wednesday, 1.07 PM, the Gensol share price was down 5.00%, and was trading at ₹204.40.

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