Gensol Engineering shares fall 2% after company increases QIP size to ₹750 crore

In a meeting of the board of directors held on Friday, Gensol Engineering decided to add an additional ₹250 crore to the already authorised amount of ₹500 crore to be raised through the QIP, raising the total offer size to ₹750 crore.

The ₹500-crore QIP was announced on August 12 when the company had declared its June 2024 quarter earnings. Gensol Engineering had announced then that the funds raised through the QIP would primarily be allocated toward debt reduction and the development of the company’s order book.

After the announcement of the change in the QIP size, shares of Gensol Engineering dropped 1.9% on Monday to hit an intraday low of ₹915.2 apiece on the National Stock Exchange of India (NSE). The stock has been an underperformer in recent times, losing almost 10% in the past one month and correcting 51% in the last one year.

Meanwhile, in a separate development in its board meeting on Friday, the company approved the re-appointment of Anmol Singh Jaggi as the managing director and Puneet Singh Jaggi as the whole-time director of the company for a period of 5 years each.

The board of Gensol Engineering also approved the issuance of 5.7 lakh shares of face value of ₹10 each at a price of ₹986 per share on a preferential basis to non-promoters Anupa Vaidya and Gauri Shah.

Gensol Engineering is scheduled to host its 12th Annual General Meeting (AGM) this month on September 30 through video conferencing (VC)/other audio visual means (OAVM).