Gensol Engineering to consider stock split, fund raising on March 13 after stock falls 70% from peak

Gensol Engineering Ltd., informed the exchanges on Friday, March 7, that it will consider multiple proposals at its upcoming board meet on March 13, including a stock split and raising of funds.The board will consider the proposal of raising funds through the issue of equity shares or eligible securities through permissible modes, including a Qualified Institutional Placement (QIP), preferential issue, Foreign Currency Convertible Bonds (FCCBs) or any other methods approved under the rules.

Additionally, the board will also consider the proposal for a stock split. Currently shares of Gensol Engineering Ltd.,

carry a face value of ₹10 each, meaning this will be the first stock split carried out by the company post listing, if approved.
The board will also consider convening an Extra-ordinary General Meeting (EGM) to approve the fund raise, stock split and any other matter of the company.
While Gensol has never carried out a stock split before, it has issued bonus shares twice to its shareholders. It first issued one bonus share for every three shares held in October 2021 (1:3) and then issued two free shares for every one held in October 2023 (2:1).Also Read: Gensol Engineering denies wrongdoing, says promoter will buy shares from market

Gensol Engineering had in September 2024 increased the size of its Qualified Institutional Placement (QIP) to ₹750 crore from ₹500 crore approved in August last year. Last year, the company had also approved the issue of 5.7 lakh shares on a preferential basis to shareholders at ₹986 per share.

Shares of Gensol Engineering ended 2.3% lower at ₹327. The stock came into Friday’s session on the back of three consecutive lower circuits of 20% and 10% (two). The stock is now down over 70% from its peak of ₹1,124, which it had hit last year.

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