2:1 Bonus Issue: Engineering Co Gets ARAI Nod For EV, Shares Gain 296% In 1-Yr

Shares of Gensol Engineering Ltd. surged by 7 percent to Rs 1,270 on Wednesday after the certification and approval of its subsidiary, Gensol Electric Vehicles' latest electric vehicle model, by the Automotive Research Association of India (ARAI). This milestone marks a significant step towards the official launch and sale of the electric vehicle in the Indian market.

Key Points

The certification attained by Gensol Electric Vehicles signifies the completion of the vehicle homologation process, including rigorous testing in controlled lab environments and various terrain conditions.

Trading at Rs 1,226 at 9:25 am, the stock reflected a 3 percent increase from the previous close on the NSE, showcasing a notable 57 percent gain over the last three months.

The electric car, set to be manufactured at a greenfield plant in Chakan, Pune, boasts a modern design and features including a moonroof, spacious boot space, in-cabin driver assistance technology, and AI-driven cloud analytics.

With an annual production capacity of 30,000 cars, the compact two-door, two-seater electric vehicle aligns with the broader mission of decarbonizing mobility.

Anmol Singh Jaggi, chairman of Gensol Engineering, expressed pride in the vehicle's development, highlighting its adherence to the highest standards of safety, quality, and performance parameters.

Gensol Engineering Bonus Issue In 2023: The company earlier this year announced 2:1 bonus issue and declared October 17 as the record date for bonus issue.

"We are committed to bringing our first made-in-India electric vehicle to the market with full compliance to ARAI regulations. We are incredibly proud to have developed a vehicle that meets the highest standards of safety, quality, and performance parameters, and matches up to the requirements of the certification."Anmol Singh Jaggi MD Gensol said in statement.

As per the regulatory filing dated February 26, 2024, "We would like to inform you that the Company has in normal course of business, received orders from two leading IPPs, who are global renewable power producers focused on delivering clean and reliable solutions. The aggregate value order value of these two projects is approximately around Rs 337,70,00,000 (Indian Rupees Three Hundred Thirty Seven Crores and Seventy Lakhs Only), including taxes."

ARAI Certification

Gensol Engineering's achievement in obtaining ARAI certification for its electric vehicle underscores the company's commitment to innovation and sustainability in the automotive sector. As the market eagerly awaits the official launch, Gensol's venture into electric mobility marks a significant stride towards a greener, more sustainable future for transportation in India.

Background

Gensol Engineering Limited specialises in engineering, procurement, and construction (EPC) services, primarily within the solar power sector. The company's foray into electric vehicles complements its existing portfolio, with a production facility in Pune manufacturing electric three-wheelers and four-wheelers.

About: Gensol Engineering Limited (GEL), which is a BSE-listed entity and also the flagship company for the Gensol group, was setup in the year 2012 when the solar industry in India was in the stage of its infancy. GEL is dedicated to using technology, engineering and innovation to give its clients the best returns on their capital. It strives to provide support and engineering expertise to clients a nd investors in Solar Power Sector through its offerings of complete concept to commissioning services for MW scale grid-connected solar power projects.

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