Gensol Engineering Increases QIP Issue Size to Rs 750 Crores
The company has also reappointed Anmol Singh Jaggi as the Managing Director for another five-year term.
Gensol Engineering has announced a significant amendment to its Qualified Institutional Placement (QIP) plan. The company has increased the issue size from Rs 500 crores to Rs 750 crores, adding an additional Rs 250 crores to the previously approved amount. Company had announced Rs 500 crore QIP on Aug. 12.
Reappointment of Anmol Singh Jaggi as MD
In a related development, Gensol Engineering has reappointed Anmol Singh Jaggi as the Managing Director for another five-year term. This move reaffirms the company's confidence in Jaggi's leadership as Gensol continues to strengthen its position in the energy sector.
Preferential Share Issue
Additionally, Gensol's board has approved the issuance of 5.7 lakh shares at a price of ₹986 per share on a preferential basis. These shares will be allotted to non-promoters Anupa Vaidya and Gauri Shah, further expanding the company's capital base.
Fund Utilisation Strategy
As outlined in the company's Q1 FY25 conference call, the funds raised through this QIP will primarily be allocated toward debt reduction and the development of the company's order book, particularly in energy storage and recently won projects. The key areas of focus include Battery Energy Storage Systems (BESS) and Independent Power Producer (IPP) projects. By channeling funds into these strategic areas, Gensol aims to solidify its growth trajectory and enhance its financial stability.
Gensol Engineering's stock is down 5% in the last five trading sessions. Over six months the sock is down close to 8%. The shares closed at Rs 931.90 a piece on Friday which is some distance off its 52-week high of Rs 1,376 per share.
