Rs 7,000 Crore Order Book: Solar & EV-Solution Provider Stock; Board Announces Stock Split, Issurance of FCCBs & Preferential Allotment for Promoter Group
The company has a market cap of Rs 995 crore and has an order book of Rs 7,000 crore as of December 31, 2024.
Gensol Engineering Ltd announces stock split, issurance of FCCBs & Preferential Allotment for Promoter Group. Details below:
Gensol Engineering has secured a preferential allotment of convertible warrants to its promoter group, totaling approximately Rs 200 crore. This strategic move involves issuing 35.71 million warrants at Rs 56 each, enabling promoters to convert them into equity shares within 18 months. This capital infusion demonstrates the promoters' strong confidence in Gensol's growth prospects and will be utilized for expansion and business development, enhancing the company's financial stability. The allocation also ensures a balanced shareholding structure, maintaining promoter commitment alongside public participation.
In parallel, Gensol is expanding its global financial footprint by approving the issuance of up to USD 50 million in Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), and Global Depository Receipts (GDRs). This initiative aims to broaden its international investor base and provide options for equity conversion, subject to regulatory approvals. By accessing international financing, Gensol aims to enhance its financial flexibility and support its growth plans, particularly in the renewable energy and infrastructure sectors. Adherence to SEBI and FEMA regulations ensures transparency and compliance in these global financial operations.
In another strategic decision, Gensol’s Board has approved a stock split, reducing the face value of its shares from Rs 10 to Re 1. This tenfold split is expected to enhance liquidity and improve affordability for retail investors, making it easier for a larger pool of investors to participate in the company’s growth. The increased availability of shares in the market may lead to higher trading volumes, potentially improving price discovery and market participation. This move aligns with Gensol’s long-term strategy of democratizing ownership while maintaining robust corporate governance. The final execution of the split will be subject to shareholder approval, after which the record date will be communicated to the exchanges.
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About the Company
Gensol Engineering Limited, founded in 2012, has rapidly become a prominent player in the renewable energy landscape, offering comprehensive solutions encompassing solar EPC services in India and the Middle East, advanced solar tracking through Scorpius Trackers, and a significant push into electric mobility with EV leasing and manufacturing. With a workforce exceeding 500 professionals, Gensol has executed over 770 MW of solar projects, establishing itself as a top-tier EPC provider, and is further expanding its portfolio into battery energy storage and green hydrogen, while simultaneously driving the adoption of electric vehicles through its manufacturing facility and leasing services, catering to a diverse clientele.
Results: According to Quarterly Results, the net sales increased by 30 per cent to Rs 345 crore and the 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 the net profit increased by 129 per cent to Rs 53.5 crore in FY24 compared to FY23.
The company has a market cap of Rs 995 crore and has an order book of Rs 7,000 crore as of December 31, 2024. The stock gave multibagger returns of over 1,000 per cent in 5 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.