Shares of Gensol Engineering Ltd. saw a fall of another 10% on Wednesday, March 5, extending its drop from the 20% decline it had seen during Tuesday’s trading session. The stock is now in a 10% lower circuit after its circuit limit was revised down to 10%.Gensol Engineering shares fell 20% on Tuesday, after its long-term bank facilities along with its short-term bank facilities were downgraded by ratings agency CARE Ratings.
CARE has downgraded Gensol’s long-term bank facilities worth ₹639.7 crore to CARE D from CARE BB+ with a stable outlook. Additionally, other long-term / short-term bank facilities worth ₹76.3 crore have been downgraded to CARE D from CARE BB+ with a stable outlook and CARE A4+ respectively.
The ratings agency highlighted in its note that the ratings have been revised lower due to on-going delays in servicing the term loan obligation as per the feedback from its lenders.
“The rating action is in-line with CARE’s policy on default recognition,” the note said.Gensol Engineering’s liquidity remains poor as reflected by the ongoing delay in debt servicing, CARE wrote in its note.
CARE has downgraded Gensol’s long-term bank facilities worth ₹639.7 crore to CARE D from CARE BB+ with a stable outlook. Additionally, other long-term / short-term bank facilities worth ₹76.3 crore have been downgraded to CARE D from CARE BB+ with a stable outlook and CARE A4+ respectively.
The ratings agency highlighted in its note that the ratings have been revised lower due to on-going delays in servicing the term loan obligation as per the feedback from its lenders.
“The rating action is in-line with CARE’s policy on default recognition,” the note said.Gensol Engineering’s liquidity remains poor as reflected by the ongoing delay in debt servicing, CARE wrote in its note.
Companies like Indian Renewable Energy Development Agency (IREDA), Power Finance Corporation, Bandhan Bank, ICICI Bank and HDFC Bank are classified as lenders to Gensol Engineering, according to the CARE note.
| Lender | Type Of Loan | Amount (₹ Cr) |
| HDFC Bank | Cash Credit | 15 |
| IREDA | Term Loan | 40.42 |
| IREDA | Term Loan | 240.11 |
| PFC | Term Loan | 344.17 |
| Bandhan bank | Cash Credit | 25 |
| ICICI Bank | Cash Credit | 26.3 |
| HDFC Bank | Bank Guarantee | 25 |
Gensol Engineering is the flagship company of the Gensol Group and is involved in the renewable power segment. It also provides operations and maintenance services for solar power projects.Shares of Gensol Engineering are down 10% to ₹372 on Wednesday. The stock is down 67% from its recent peak of ₹1,124. The stock has halved in the first two months of the year itself, having declined 51%.
(With Inputs From Abhishek Kothari)
First Published: Mar 4, 2025 12:52 pm IS
