Renewable Energy Company Unlocks Value with Rs 350 Crore Strategic Deal for Scorpius Trackers' US Subsidiary
The stock gave multibagger returns of over 650 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 25x and an ROE of 20 per cent.
Gensol Engineering Limited has signed a non-binding term sheet for a Rs 350 crore strategic transaction involving the sale of its US subsidiary, Scorpius Trackers Inc., to a major US Renewable Energy Solutions provider. The deal includes transferring exclusive and global Intellectual Property (IP) rights (excluding India) for Scorpius Trackers' solar tracking technology. This move aims to monetize high-value assets, unlock capital, and reinvest in core growth areas, strengthening Gensol's financial position. The transaction will be completed in two tranches, with full closure expected by March 2026, pending due diligence, approvals, and closing conditions.
The proceeds will be used to expand Scorpius Trackers’ India operations, fuel solar EPC business growth, and support Gensol’s clean energy initiatives. This reinvestment aligns with Gensol's long-term vision to improve cash flow and strengthen its balance sheet. While global IP rights (excluding India) are transferred, Scorpius Trackers Pvt. Ltd., India, remains a wholly owned Gensol subsidiary, retaining IP for Indian projects and focusing on the Indian market.
Anmol Jaggi, Chairman & Managing Director of Gensol Engineering Limited. "This deal is a testament to the inherent value within Gensol’s subsidiaries and the strength of our innovation-driven approach. The monetization of Scorpius Trackers' US business enables us to reinvest in high-growth opportunities in India while strengthening our financial position. This marks a significant milestone in our journey to enhance shareholder value and accelerate our leadership in renewable energy.”
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About the Company
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 revolutionising 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 specialises in Solar EPC services, having built solar power plants exceeding 590 MWp globally and is dedicated to advancing clean energy and electric mobility solutions.
According to Quarterly Results, the net sales increased by 30 per cent to Rs 345 crore and net profit increased by 6 per cent to Rs 18 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 42 per cent to Rs 1,056 crore, EBITDA increased by 89 per cent to Rs 246 crore and net profit increased by 34 per cent to Rs 67 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 142 per cent to Rs 963 crore and net profit increased by 129 per cent to Rs 53.5 crore in FY24 compared to FY23.
The company has a market cap of over Rs 2,100 crore. The stock gave multibagger returns of over 650 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 25x and an ROE of 20 per cent. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.