In a separate filing, the board also disclosed plans to consider a stock split and explore fundraising options, including equity issuance, foreign currency convertible bonds, and other financial instruments, during its upcoming board meeting on March 13.
“The promoters have sold approximately 2.37% of total equity shares of the company, amounting to 9,00,000 shares, to unlock liquidity that will be reinvested into the business through equity infusion. This step is part of a strategy aimed at reinforcing the company’s balance sheet and supporting stability,” Gensol Engineering stated in its filing.
Further underscoring their commitment, the promoters will infuse the same amount received through this sale or more amount in the warrant subscription round executed on June 18, 2024, thereby providing additional growth capital to the company, the board said.
Following this transaction, the promoters now hold a 59.70% stake in the company.
On Thursday, the company had announced the resignation of its Chief Financial Officer (CFO) Ankit Jain. He is being replaced by Jabirmahendi Mohammedraza Aga.The fall in the stock started in late February, which became sharper after the company received multiple credit rating downgrades from credit agencies CARE and ICRA.ICRA has downgraded the credit ratings of various loan facilities amounting to Rs 2,050 crore. The long-term fund-based term loan of Rs 925 crore and fund-based cash credit of Rs 718.5 crore were both downgraded from [ICRA]BBB- (Stable) to [ICRA]D.
Similarly, long-term and short-term bank guarantee (BG) facilities totaling Rs 406.5 crore and a sub-limit BG of Rs 51.3 crore were downgraded from [ICRA]BBB- (Stable)/[ICRA]A3 to [ICRA]D.
Also read: Gensol Engineering shares extend losses for 8th day, crack 10% as CFO resigns
Meanwhile, CARE Ratings has downgraded the credit ratings of bank facilities totaling Rs 716 crore to CARE D, indicating default or high credit risk. The long-term bank facilities of Rs 639.7 crore were downgraded from CARE BB+ (Stable) to CARE D, while the long-term/short-term bank facilities of Rs 76.3 crore were downgraded from CARE BB+ (Stable)/CARE A4+ to CARE D.
The shares of Gensol Engineering closed 4.2% lower at Rs 321.20 on the BSE on Friday.
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