Gensol Engineering shares reverse gains to trade with losses amidst CFO exit

Shares of Gensol Engineering Ltd., which have been locked in a lower circuit for the last three trading sessions, were down as much as 8% in initial trading on Friday, March 7. However, the stock reversed from the lows, to trade with gains of over 5%, only to reverse the gains a few minutes later.In an exchange filing late Thursday night, Gensol Engineering said that the board has approved the resignation of its Chief Financial Officer (CFO) Ankit Jain, with effect from March 6, 2025.
Gensol has now appointed Jabirmahendi Mohammedraza Aga as the new CFO. Aga has played various roles within the Gensol Group in corporate finance, risk management, investor relations and other roles, the company said.
Gensol Engineering shares fell to a 20% lower circuit earlier this week after CARE Ratings downgraded its rating citing delay in debt servicing. The stock has since then seen two subsequent lower circuits of 10% each after the circuit limit was revised.Post CARE’s downgrade, ICRA too downgraded its credit rating on the stock, alleging that the company had falsified some loan repayment documents.

Interacting with CNBC-TV18 exclusively on Thursday, Gensol Engineering’s Chairman & MD Anmol Singh Jaggi denied any wrongdoings on the falsification of documents, adding that the debt servicing delays were due to a liquidity mismatch while executing large projects.Also Read: Gensol Engineering denies wrongdoing, says promoter will buy shares from market

Gensol Engineering currently has an order book of over ₹7,000 crore, which it plans on executing over the next 18 months.

Jaggi also added that he is committed to fully servicing the debt and hopes for an upgrade from the rating agencies when they review their stance after three months. Current debt obligations for Gensol stand at ₹20 crore a month, meaning a ₹60 crore repayment need over the next three months.

The Chairman & MD said that two asset sales, sale of vehicles and a subsidiary are currently underway and that could fetch them a sum of ₹650 crore.

Shares of Gensol Engineering are trading 5% higher at ₹351.45. The stock had ended 10% lower on Thursday at ₹334. The stock is now down 70% from its peak of ₹1,124, which it had surged to last year.

Also Read: Gensol Engineering clarifies on promoter pledges, document falsification and debt repayment