Rs 531 crore order book and FIIs & DIIs increase stake: Board announces Rs 300,00,00,000 fundraise via QIP; stock trades at high ROE!

The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 3,850 per cent in 3 years.

In a significant move indicating future expansion plans, the Board of Directors of Gensol Engineering Limited has approved a two-pronged approach: increasing the authorized share capital and exploring a potential funding round of up to Rs 300,00,00,000.

Boosting Capital Flexibility: The Board has proposed a 25 per cent increase in the company's authorized share capital, from Rs 40 crore to Rs 50 crore. This expansion, subject to shareholder and regulatory approvals, provides Gensol Engineering with greater financial flexibility for future growth initiatives.

Seeking Strategic Investment: With an eye towards ambitious projects, the Board has authorized the exploration of raising up to Rs 300,00,00,000 through various fundraising methods. This could include issuing new equity shares, preferential allotments, private placements, and even qualified institutional placements (QIPs). The company may seek investment from diverse sources, including institutions, mutual funds, venture capital funds, and individual investors, both domestic and foreign.

The final decision on the exact method and terms of the fundraising will be made by the Board, taking into account prevailing market conditions and other relevant factors. The issue price of any new shares, whether at market value, premium, or discount, will be determined in consultation with financial advisors and within legal and regulatory parameters. Shareholder approval will be sought for any finalized plan.

This strategic action marks a clear commitment from Gensol to pursue exciting new opportunities and drive future growth. The potential influx of capital will empower the company to solidify its position in the market and embark on its next chapter of success.

Gensol Engineering Limited provides renewable energy project development services. The Company constructs solar plants. Gensol Engineering serves customers in India. The company also manufactures electric vehicles.  

Rising Indian EV star Gensol, founded in 2022, is revving up for an electrifying debut with its innovative electric car, tantalizing consumers with a glimpse of its daring design and ambitious production plans. Their state-of-the-art Pune plant, soon ARAI-approved, readies to churn out 30,000 cars yearly, while hints of a sleek silhouette, futuristic wheels, and unique features promise a head-turning reveal in March 2024. BluSmart ride services and a 300-EV order for the Odisha government solidify Gensol's commitment to transforming India's urban mobility through a comprehensive EV ecosystem.

An ace investor, Mukul Agrawal holds a significant stake (1.64 per cent) in the company. The company is well-positioned for continued growth, as it has secured multiple orders for EPC and other related work. As of September 30, 2023, the company’s order book stands at Rs 531 crore and FIIs increased their stake to 2.57 per cent.

The company had a market cap of over Rs 3,000 crore. The shares of the company have an ROE of 21.4 per cent and an ROCE of 12.4 per cent. The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 3,850 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.