Market Performance
Shares of Gensol Engineering continued their downward trend on March 11, extending losses as selling pressure persisted. The stock price reached a multi-month low, marking the 11th consecutive session of decline. As of 10:15 AM, shares were trading at Rs 290.55 on the NSE, hitting a 5 per cent lower circuit. This ongoing decline has resulted in a 70 per cent drop from the company's 52-week high.
Equity Infusion Announcement
On March 10, General Engineering's promoters infused Rs 29 crore into the company through the conversion of warrants into equity. According to a regulatory filing, 4,43,934 equity shares were issued at Rs 871 per share. Despite this capital infusion, the downward momentum in stock prices continued, with investors showing little optimism over the development.
Company Developments and Financial Impact
The company has faced multiple ratings downgrades due to reported delays in servicing term loan obligations. In the previous session, promoter entities reduced their holdings by selling approximately 2.37 per cent of total equity, equivalent to 9 lakh shares.
Additionally, the firm has come under scrutiny following allegations related to financial discrepancies. A recent assessment by ICRA resulted in a downgrade of Gensol Engineering's rating, citing delayed debt servicing based on feedback from the company's lenders.
However, Gensol Engineering has denied involvement in these allegations and initiated an internal review to investigate the claims.
Summary
Gensol Engineering's stock continues to decline, reaching a multi-month low amid persistent selling pressure. The company's announcement of a Rs 29 crore equity infusion has not reversed market sentiment, as financial concerns and debt servicing delays remain in focus. While the company refutes allegations of financial misrepresentation, an internal inquiry has been initiated to address the matter concerns raised by external agencies.
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