Gensol Engineering shares hit upper circuit as company mulls fundraising

Shares of Gensol Engineering Ltd hit an upper circuit during the trading session on Thursday as the company announced its board meeting to consider plans to raise funds. The company informed about the same through an exchange filing after the market hours on Wednesday.

A meeting of board of directors of the company will be held on Monday, January 1, 2024, inter alia to consider and approve the proposal of raising of funds by way of issuance of equity shares or any other eligible securities through permissible modes, said the company in the exchange filing.

The modes including a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the company, it added.

Following the update, shares of Gensol Engineering rose about 5 per cent to Rs 803 on Thursday, with a total market capitalization of close to Rs 3,050 crore. However, the scrip had settled at Rs 764.85 in the previous trading session on Wednesday.

Shares of Gensol Engineering have surged about 190 per cent from its 52-week low at Rs 265.42. The stock has gained about 17 per cent in the last three months, while the stock is up more than 70 per cent in the last six-month period. The stock has more than doubled investors' wealth in the last one-year period.

In November 2023, Gensol Engineering had bagged an order from NHPC as it emerged as the lowest bidder for the engineering, procurement and commissioning (EPC) of a trailblazing Green Hydrogen-based mobility station in Kargil, Ladakh. The stock had traded ex-bonus in 2:1 ratio in October 2023.

Founded in 2012, Gensol Engineering offers engineering, procurement, and construction (EPC) services for the development of solar power plants. Gensol has successfully installed solar power plants with combined operations, and has also established a cutting-edge electric vehicle (EV) manufacturing facility in Pune, India.

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