Gensol Engineering CFO exits; share price tumbles 5% to hit 52-week low, key things to know

At 11:26 AM, shares of Gensol were trading at ₹317.70 apiece, tumbling 5.11% on the National Stock Exchange. It had gained around 2% during the opening bell. The scrip touched its 52-week low of ₹307.25 during the day’s trade.

Its market capitalisation stands at ₹1,241.73 crore. The stock has plunged over 40% in the last five trading sessions.

The company has appointed Jabirmahendi Mohammedraza Aga as its new CFO with effect from March 7, 2025.

Aga, with over 14 years of experience in financial leadership, is known for an exceptional ability to drive strategic financial planning and growth. “He has consistently played a key role in optimising financial operations and leading high-performance teams to achieve business objectives within Gensol Group,” the company said in a statement to the exchanges.

“Currently, Aga is playing a key role within Gensol Group with demonstrated expertise in corporate finance, risk management, investor relations, and financial reporting, with a proven track record of enhancing profitability and shareholder value,” the statement further added.

Shares of the construction engineering company came under pressure after rating agencies CARE and ICRA recently downgraded the company's credit ratings.

Addressing the downgrades, Gensol Engineering Ltd. (GEL) on Wednesday said proceeds from the series of asset divestments will be used to reduce debt.

Acknowledging the credit rating downgrades by CARE and ICRA, the firm said that it has happened due to a short-term liquidity mismatch, which is improving by way of customer payments.

"That said, we understand the concerns these downgrades have raised and are committed to addressing them responsibly to all our stakeholders," it said in a statement.

The firm denied involvement in "falsification claims" and said it would be setting up a committee to comprehensively review the matter. "This underscores the company's commitment to accountability, transparency, and sustainable business practices."

On March 4, CARE Ratings downgraded the company to default from the previous “BB+.”

Further, it downgraded Gensol’s long-term bank facilities worth ₹639.7 crore to “CARE D” from the previous “CARE BB+” with a stable outlook. Furthermore, it also revised its ratings lower for other long-term/short-term bank facilities from “CARE BB+” with a stable “CARE A4+” outlook to “CARE D”.

As per CARE, issuers with a CARE D rating are in default or are expected to default soon. Additionally, a BB+ rating means an issuer has a moderate risk of defaulting on its debt obligations.

On March 5, ICRA Ratings downgraded the bank facilities of Gensol Engineering Limited (GEL) to [ICRA]D following feedback received by ICRA from the company’s lenders about the ongoing delays in debt servicing.