Gensol Engineering shares slide 5%, hit lower circuit; here’s why

The shares of solar power engineering company Gensol Engineering hit their 5% lower circuit at Rs 289.90 on the BSE in early trade on Tuesday, March 11, after the company’s promoters announced they would infuse Rs 28.99 crore through the conversion of warrants into equity in the company.

“Gensol Engineering Limited (BSE: 542851 | NSE: GENSOL) is pleased to announce that promoters of the company are reinforcing long-term confidence in Gensol’s vision by infusing Rs. 28,99,99,885.50/- (Rupees Twenty Eight Crores and Ninety-Nine Lakhs Ninety-Nine Thousand Eight Hundred Eighty Five and Fifty Paisa)through the conversion of warrants into equity,” the company informed via a regulatory filing.

A total of 4,43,934 equity shares will be issued at Rs 871 per share, ensuring the company remains well-capitalized for its strategic expansion in renewable energy and electric mobility.


This move aims to highlight the promoters' unwavering commitment to Gensol’s growth trajectory and strengthen its financial position.

Additionally, the investment follows a strategic liquidity decision, with proceeds from the equity stake sale being reinvested into the company to support its continued development.

Also read: IndusInd Bank shares in focus after 2.35% net worth impact from derivatives review

The shares of Gensol Engineering came into the limelight after credit rating agencies CARE and ICRA downgraded the company’s multiple credit ratings. After that, Gensol Engineering informed that its CFO had resigned from the company to pursue external opportunities.

The shares of Gensol Engineering, on Monday, closed 5% lower at Rs 305.15 on the BSE. Further, the stock is currently under Additional Surveillance Measure (ASM): Stage 1.

The ASM framework was introduced by SEBI (Securities and Exchange Board of India) and stock exchanges (NSE & BSE) to curb excessive volatility, and speculative trading, and protect retail investors from market manipulation.

When a stock is placed under ASM Stage 1, it means that the stock is showing high volatility, abnormal price movement, or excessive speculation, and regulatory measures are applied to control the risk.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)