Gensol Engineering Approves INR 600 Cr Fund-Raising Initiative to Boost Growth and Financial Standing

Gensol Engineering Limited has announced that its Board of Directors has approved a fund-raising initiative totaling INR 600 crore, aimed at strengthening the company’s financial standing. The decision, made during a meeting, underscores the company’s commitment to sustainable growth, reducing debt, and enhancing value for its stakeholders.

The fund-raising plan includes raising INR 400 crore through the issuance of Foreign Currency Convertible Bonds (FCCBs) and INR 200 crore through the issuance of warrants to promoters. This move, along with ongoing divestments such as the sale of vehicles and a subsidiary, is expected to significantly improve the company’s debt-equity ratio, positioning Gensol for long-term financial strength and resilience.

Currently, Gensol Engineering has a debt of INR 1,146 crore against reserves of Rs. 589 crore, resulting in a debt-equity ratio of 1.95. With the approval of the INR 600 crore fund-raise, the company’s reserves are expected to increase to approximately INR 1,200 crore. Additionally, with INR 615 crore in divestments underway, the company’s debt will be reduced to about INR 530 crore, leading to a much healthier debt-equity ratio of 0.44.

Speaking on the development, Anmol Singh Jaggi, Managing Director at Gensol Engineering Limited, stated: “Our foremost priority is to strengthen Gensol's balance sheet, and we are taking bold and decisive steps to address it starting with this fund-raise. This INR 600 cr. fund-raise, coupled with the strategic divestments, will be crucial in strengthening and positioning the company for sustained growth. For years, we have delivered high value to our shareholders, and that remains our top priority. We are sharply focused on achieving a net-debt zero status, maintaining financial discipline, and unlocking even greater potential for our investors.”