Gensol Engineering board approves fundraising and stock split of 1:10

Gensol Engineering has received approval for fund-raising initiatives amounting to ₹600 crore aimed at significantly enhancing its financial standing. This move amid the backdrop of its debt servicing position after rating agencies cited fraud in submitting credit rating documents.

This initiative, combined with the company’s ongoing divestments, including the sale of vehicles and the sale of a subsidiary, is expected to improve Gensol’s debt-equity ratio, positioning it for long-term financial strength and resilience. The board of directors of the company at their meeting held on March 13, 2025, inter-alia, approved the same.

The board will seek authorisations from members of Foreign Currency Convertible Bonds, ADRs, GDRs and global listed and unlisted options fully convertible to equity shares of the company.

In addition, the board also approved a sub-division/split of existing shares in the ratio of 1:10. The record date will be announced in due course after shareholders' approval. The proposed sub-division (split) of equity shares aims to enhance liquidity and increase the affordability of the company's shares for retail investors.

Gensol Engineering is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across many countries, including India.

The share price of Gensol Engineering has corrected more than 60% in 2025 after rating agencies found fraud and discrepancies in credit rating documents.