2:1 Bonus Share & Rs 5,025 Crore Order Book: Multibagger Solar EPC & EV-Solution Provider Stock In Focus As Board Increases QIP Issue Size to Rs 750 Crore
The stock gave multibagger returns of over 4,000 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with PE of 60x and an ROE of 21 per cent.
The Board of Directors of Gensol Engineering Limited, at their meeting, approved several significant business decisions. Firstly, they amended the issue size of the Qualified Institutional Placement (QIP) from Rs 500 crore to Rs 750 crore, increasing the total amount raised by Rs 250 crore. All other terms and conditions of the QIP remained unchanged.
Secondly, subject to the approval of shareholders and relevant regulatory authorities, the Board approved an increase in the company's authorized share capital from Rs 50 crore to Rs 75 crore. This increase will be achieved by issuing an additional 2.5 crore equity shares of Rs 10 each. Additionally, the Board approved the issuance of up to 5,70,798 equity shares to Anupa Shailesh Vaidya and Gauri Kiran Shah at a price of Rs 986 per share, including a premium of Rs 976 per share, as a preferential allotment for consideration other than cash (share swap).
Additionally, Gensol Engineering Limited has significantly expanded its renewable energy footprint through recent strategic acquisitions and partnerships. The company has acquired a 99.99 per cent stake in Gridstor Energy Private Limited, a newly formed entity focused on renewable power generation and distribution. This acquisition, funded through a cash investment of Rs 99,990, positions Gridstor Energy as a wholly-owned subsidiary of Gensol Engineering Limited, aligning with the company's strategic expansion in the renewable energy sector.
Moreover, Gensol has joined forces with Matrix Gas & Renewables Ltd to secure a groundbreaking contract for India's first Bio-Hydrogen project. The partnership will involve converting 25 tons of bio-waste into 1 ton of hydrogen daily, contributing to India's Green Hydrogen Mission Valued at Rs 164 crore, the project is anticipated to be completed within 18 months. Gensol and Matrix have strategically partnered with Westinghouse, USA, a global leader in plasma gasification technology. The project scope encompasses the establishment of a 25 TPD bio-waste processing facility and the production of 1 TPD Green Hydrogen using the GH2-PREGS technology. As companies with common promoters, Gensol and Matrix are poised to continue their collaboration in the Green Hydrogen domain, leveraging their combined expertise to explore opportunities in Green Steel and Green Ammonia.
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About Gensol Engineering Ltd
Established in 2012, Gensol Engineering Limited, part of the Gensol group, provides comprehensive engineering, procurement, and construction (EPC) services for solar power plants globally, with a proven track record of installing over 770 MW of solar capacity across ground-mounted and rooftop installations. Committed to sustainability, Gensol is revolutionizing the Indian EV industry by setting up a state-of-the-art manufacturing facility in Pune for electric three-wheelers and four-wheelers, capable of producing 30,000 vehicles annually. Additionally, they offer extensive EV leasing solutions for passenger, fleet, and cargo needs, having already leased over 3,000 EVs with plans to expand significantly. Headquartered in India, Gensol specializes in Solar EPC services, having built solar power plants exceeding 590 MWp globally, and is dedicated to advancing clean energy and electric mobility solutions.
The promoters of the company bought 53,945 shares and increased their stake to 62.77 per cent in June 2024 compared to 62.63 per cent in March 2024. The company has a market cap of over Rs 3,500 crore and as of June 2024, the company has an order book of Rs 5,025 crore. The shares of the company ex-traded bonus shares in the ratio 2:1 on October 17, 2023. The stock gave multibagger returns of over 4,000 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with PE of 60x and an ROE of 21 per cent. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.