Currently, Gensol Engineering has a debt of ₹1,146 crore against reserves of ₹589 crore, resulting in a debt-equity ratio of 1.95.With this announcement of ₹600 crore fund-raise, the company’s reserves are expected to increase to approximately ₹1,200 crore.
Additionally, with ₹615 crore of divestments underway, the company’s debt will be reduced to approximately ₹530 crore.
These measures will lead to a significantly improved and healthy debt-equity ratio of 0.44, the company said in an exchange filing.
“Our foremost priority is to strengthen Gensol’s balance sheet, and we are taking bold and decisive steps to address it starting with this fund-raise. This Rs 600 crore fund-raise, coupled with the strategic divestments, will be crucial in strengthening and positioning the company for sustained growth,” said Anmol Singh Jaggi, Managing Director at Gensol Engineering.”For years, we have delivered high value to our shareholders, and that remains our top priority. We are sharply focused on achieving a net-debt zero status, maintaining financial discipline, and unlocking even greater potential for our investors,” Jaggi added.
Gensol Engineering will seek shareholder nod to issue convertible bond, ADR, and GDR for up to $50 million.
The company has also approved splitting one share of ₹10 each into 10 shares with a face value of ₹1 each.
Record date for the stock split will be intimated in due course after obtaining shareholder approval.
Gensol has not done any stock split prior to today’s proposal
However, it issued a 2 for 1 bonus in October 2023 and a 1 for 3 bonus in October 2021.
Gensol Engineering shares have opened in a lower circuit of 5% today. The stock has already declined more than 75% from their recent high.
