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Gensol Engineering Promoter Infuses INR 29 Cr via Conversion of Warrants into Equity

Gensol Engineering Ltd.'s promoters are reinforcing their long-term confidence in the company by infusing INR 29 crore through the conversion of warrants into equity, supporting its expansion in renewable energy and electric mobility.

March 11, 2025. By Mrinmoy Dey

Gensol Engineering Ltd. has announced that promoters of the company are reinforcing long-term confidence in Gensol’s vision by infusing about INR 29 crore through the conversion of warrants into equity.

“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 INR 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 statement.

It further added that this investment follows a recent strategic decision by the promoters to unlock liquidity through an equity stake sale with proceeds reinvested into the company.

This comes after the company’s credit ratings were downgraded a week back by credit rating agencies ICRA and CARE Ratings.

CARE Ratings revised the ratings assigned to the bank facilities of Gensol Engineering on account of on-going delays in the servicing of term loan obligation as per feedback from its lenders. The rating action is in line with CARE’s policy on default recognition, stated CARE Ratings on the rationale behind the downgrade.

The ratings for the bank facilities of Gensol Engineering have been downgraded to [ICRA]D following feedback received by ICRA from the company’s lenders about the ongoing delays in debt servicing, mentioned the rationale given by ICRA.

In response the company stated that the rating downgrade happened due to short-term liquidity mismatch which is improving by way of customer payments.

Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Ltd. stated, “Gensol continues to maintain strong revenue visibility supported by a healthy order book across our key business segments. We have also undertaken multiple initiatives aimed at strengthening our balance sheet, including focused efforts towards debt reduction and optimising working capital. We remain confident in the long-term growth potential of the business and are committed to creating sustainable value for all our stakeholders.”

Gensol Engineering currently has a total debt of INR 1,146 crore against reserves of INR 589 crore, resulting in a debt-equity ratio of 1.95. The solar EPC segment holds a fund-based capital limit of INR 249 crore, while the EV division has a term loan of INR 645 crore. Additionally, the EV leasing subsidiary carries a term loan of INR 252 crore. Notably, the company has reduced its debt obligation by approximately INR 230 crore in the current financial year.

The company has undertaken strategic deleveraging through asset divestments to significantly reduce its debt. “This includes the sale of 2,997 electric vehicles worth INR 315 crore and the sale of a wholly owned subsidiary for INR 350 crore. These transactions will collectively reduce debt by INR 665 crore, bringing the debt-equity ratio down to 0.8,” the company said in a regulatory filing.

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Anmol Singh Jaggi

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