Gensol free fall continues, stock plunges 52% in 12 sessions

Shares of crisis-hit Gensol Engineering extended their downtrend for the twelth straight session on March 12, dragging the stock to a fresh 52-week low in early trade. The flagship company of the Gensol Group has plunged over 52% since February 24, while it eroded 75% of its market value in the past nine months.

On Wednesday, Gensol Engineering (GEL) shares were locked in its 5% lower circuit limit for the third consecutive session, hitting new record low of ₹275.45 on the BSE. The market capitalisation of the smallcap stock slipped further to ₹1,047 crore. The stock is down 75.5% from its 52-week high of ₹1,125.75 touched on June 24, 2024.

The sentiment was further dented after its chief financial officer (CFO) resigned from the company. Ankit Jain, CFO of Gensol Engineering has resigned from his position citing personal reasons, the company said in a late night exchange filing on Tuesday.

“The resignation letter notes that Ankit Jain is resigning for personal reasons and intends to explore other career opportunities. It also confirms that there are no additional significant factors behind his decision to resign,” the release noted.

The company informed exchanges about Jain’s resignation on March 6, 2025, and the present disclosure is made to ensure compliance with the additional requirement to submit the resignation letter within seven days from the effective date of resignation, the release noted.

Meanwhile, in a bid to ease investors’ nerves after recent rout, Gensol’s promoter infused around ₹29 crore in the company through the conversion of warrants into equity. However, the move failed to lift sentiments.

“In alignment with the promoter group’s unwavering support for the company’s growth trajectory, warrants will be converted into 4,43,934 equity shares at a price of ₹871 per share. This step reaffirms the promoters’ deep-rooted commitment to Gensol’s strategic expansion in renewable energy and electric mobility, ensuring the company is well-capitalised,” the company said in a BSE filing on March 10.

This investment follows a recent strategic decision by the promoters to unlock liquidity through an equity stake sale with proceeds reinvested into the company. Earlier this week, the promoters sold 2.3% stake, or 9,00,000 equity shares of the company.

The sell-off in Gensol Engineering shares was triggered after ICRA and Care Rating downgraded the renewable power company, raising serious concerns about liquidity risk. On March 4, ICRA downgraded the credit ratings of various loan facilities amounting to ₹2,050 crore, citing ongoing delays in debt servicing. The rating agency also flagged the deterioration in the financial flexibility of the company with an increase in promoter’s share pledge to 85.5% of its holding in GEL in February 2025 from 79.8% in September 2024.

Adding to the woes, CARE Ratings also downgraded the ratings assigned to the bank facilities of GEL. “GEL’s liquidity remains poor as reflected by the ongoing delay in the debt servicing,” it said in a note on March 5.

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