Currently, Gensol Engineering has a debt of Rs 1,146 crore against reserves of Rs 589 crore, resulting in a debt-equity ratio of 1.95.
Gensol Engineering Limited has announced that its board of directors has approved fund-raising initiatives amounting to Rs 600 crore and the sub-division of existing equity shares of the company. According to the information shared with the exchanges, the board has approved a share split in a 1:10 ratio.
“…approved and recommended resolution through general meeting for alteration of the capital of the Company by subdivision/split of existing equity share of the Company from 1 (One) equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, into 10 (Ten) equity shares having face value of Rs. 1/- (Rupees One only) each, fully paid-up.”
The record date for the same will be determined after obtaining approval from shareholders.
Out of Rs 600 crore, the company will raise Rs 400 crore through the issuance of Foreign Currency Convertible Bonds (FCCBs) and Rs 200 crore through the issuance of warrants to promoters.
Currently, Gensol Engineering has a debt of Rs 1,146 crore against reserves of Rs 589 crore, resulting in a debt-equity ratio of 1.95.
With this announcement of Rs 600 crore fund-raise, the company’s reserves are expected to increase to approximately Rs 1,200 crore.
Additionally, with Rs 615 crore of divestments underway, the company’s debt will be reduced to approximately Rs 530 crore.
These measures will lead to a significantly improved and healthy debt-equity ratio of 0.44.
Meanwhile, the counter fell 5 per cent to hit the lower circuit of Rs 261.70 on the BSE. The counter opened at Rs 265.55 on the BSE against the previous close of Rs 275.45.
This is the 13th straight day when the counter has extended losses. In the last two weeks, Gensol Engineering’s shares tanked more than 52 per cent.
Earlier, Ahmedabad-based Gensol Engineering said that promoters of the company have sold 9 lakh shares or nearly a 2.37 per cent stake to unlock liquidity that will be reinvested into the business through equity infusion.
