On Friday, Gensol Engineering Limited’s stock saw a significant decline, dropping by 4.22% from the previous day’s price.
The stock closed at ₹321.20, hitting a 52-week low of ₹303 during the trading session. This marks a sharp 70% decline from its peak of ₹1,124 last year.
The steep fall followed an important announcement by the company regarding its future financial plans.
Company’s Key Announcement
On March 7, Gensol Engineering Ltd informed stock exchanges that its board will meet on March 13 to discuss major proposals. These include a potential stock split and fundraising plans.
To raise funds, the company is considering multiple options such as Qualified Institutional Placement (QIP), preferential issues, or Foreign Currency Convertible Bonds (FCCB), subject to regulatory approvals.
Stock Split and Past Bonus Shares
The board will also review a stock split proposal. Currently, the face value of Gensol shares is ₹10. If approved, this will be the company’s first-ever stock split since it got listed.
Though Gensol has never conducted a stock split, it has issued bonus shares twice in the past:
October 2021 – Issued one bonus share for every three shares held (1:3).
October 2023 – Issued two bonus shares for every one share held (2:1).
Important Announcement from Gensol Engineering
On March 7, Gensol Engineering Ltd made a key announcement to the stock exchanges.
The company’s board will meet on March 13 to discuss several proposals, including a stock split and fundraising plans.
Fundraising Plans
The company is exploring multiple methods to raise funds, including Qualified Institutional Placement (QIP), preferential issues, or Foreign Currency Convertible Bonds (FCCB).
These fundraising efforts are subject to regulatory approvals.
Stock Split Proposal
Gensol Engineering’s board will also review a proposal for a stock split. Currently, the face value of the company’s shares is ₹10. If approved, this will be Gensol’s first-ever stock split since it went public.
Additionally, in September 2024, the company increased its QIP size from ₹500 crore (approved in August 2023) to ₹750 crore.
Last year, it also approved issuing 5.7 lakh shares at ₹986 per share on a preferential basis to select investors.
