Gensol Engineering Limited has announced that its Board of Directors, in a meeting held earlier today, has approved fund-raising initiatives amounting to ₹600 crore. This move underscores the company’s strong commitment to achieving sustainable growth, reducing debt, and maximising value for its stakeholders.
The Board of Directors has approved resolutions to raise ₹400 crore through the issuance of Foreign Currency Convertible Bonds (FCCBs) and an additional ₹200 crore through the issuance of warrants to promoters. These strategic financial measures, combined with the company’s ongoing divestments, including the sale of vehicles and a subsidiary, are expected to significantly improve Gensol’s debt-equity ratio and position it for long-term financial strength and resilience.
Currently, Gensol Engineering has a debt of ₹1,146 crore against reserves of ₹589 crore, resulting in a debt-equity ratio of 1.95. With the announcement of the ₹600 crore fund-raise, the company’s reserves are expected to increase to approximately ₹1,200 crore. Additionally, with ₹615 crore of divestments underway, the company’s debt is projected to be reduced to approximately ₹530 crore. These measures will lead to a significantly improved and healthier debt-equity ratio of 0.44.
Speaking on the development, Anmol Singh Jaggi, Managing Director at Gensol Engineering Limited, emphasised that the company’s foremost priority is to strengthen its balance sheet. He stated that Gensol is taking bold and decisive steps to address this, starting with the fund-raise. The ₹600 crore fund-raise, coupled with the strategic divestments, will be crucial in positioning the company for sustained growth. Jaggi highlighted that for years, Gensol has delivered high value to its shareholders and remains committed to maintaining financial discipline and achieving a net-debt zero status, further unlocking potential for investors.
With these financial initiatives, Gensol Engineering aims to fortify its balance sheet, enhance financial stability, and accelerate its journey towards achieving a net-debt zero status. The company remains dedicated to sustainable growth and maximising shareholder value while ensuring long-term financial health.
