Gensol Engineering stock extends losses, down 5% as promoter infusion of Rs 29 crore fails to excite

Gensol Engineering denied any involvement in the alleged activities.

Shares of beleaguered EPC player Gensol Engineering extended losses in morning trade on March 11, as investors continued to dump their holdings in the stock.

Yesterday, Gensol Engineering's promoters shared that they infused Rs 29 crore into the company through the conversion of warrants into equity. In a filing to the stock exchanges, the company stated that the warrants would be converted into 4,43,934 equity shares at a price of Rs 871 per share.

This announcement follows a consistent decline in share prices of the company, with its shares falling for the 11th consecutive session on March 11. The firm's stock has crashed 70 percent from its 52-week high.

However, this development hasn't put a pause to the relentless selling of shares. At 10.15 am, Gensol Engineering shares were at their 5 percent lower circuit to quote Rs 290.55 on the NSE.

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In the previous session, the stock was down after the promoters offloaded 2.3 percent stake in the company. The promoters have sold approximately 2.37 percent of total equity shares of the company, amounting to 9 lakh shares.

Gensol's shares have slipped to multi-month low after multiple ratings downgrade due to ongoing delays in servicing its term loan obligations, and alleged 'falsification' of data, which the EPC player has denied being involved with and is currently probing.

ICRA alleged that the clean energy company falsified its documents on debt servicing. In its latest report, ICRA downgraded the rating of Gensol Engineering after receiving feedback from the company's lenders about the ongoing delays in debt servicing.

However, Gensol has denied any involvement in the alleged activities and has initiated an internal investigation.

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