4000% Gains: Multibagger Stock In Focus On 99.99% Share Capital Subscription Of Gensol Clean

Gensol Engineering witnessed a 5% dip in its shares on March 12 following an official announcement that it has subscribed to 99.99% of the total share capital of Gensol Clean Energy Private Limited. This strategic move has transformed the latter into a wholly-owned subsidiary of Gensol Engineering Limited, triggering fluctuations in the company's stock prices.

Gensol Engineering confirmed the subscription of 9,999 equity shares, amounting to Rs. 99,990.00 in Gensol Clean Energy Private Limited, according to a release on the stock exchanges.

Just a day before this announcement, on March 11, Gensol Engineering revealed its triumphant position as the L1 contender for a substantial 70 MW / 140 MWh standalone Battery Energy Storage Systems (BESS) project. Out of the total 250 MW / 500 MWh project, this accomplishment underscores the company's prowess in the clean energy sector.

Under the Tariff-based Global Competitive Bidding model, Gensol will spearhead the development of this energy storage project, providing Gujarat Urja Vikas Nigam Ltd. with on-demand energy storage capacity. The project is tailored to offer 70MW / 140 MWh energy to Gujarat state DISCOMS for two charge/discharge cycles per day.

This ambitious project is poised to contribute significantly to Gensol's financials, with an estimated Rs 450 crore added to the company's topline over the contract period. However, specific details regarding the duration of the contract have not been explicitly disclosed by the company.

As of 12:40 pm on March 12, the shares of Gensol Engineering were locked at the 5% lower circuit at Rs 829.45 per share on the Bombay Stock Exchange (BSE). This dip in share prices reflects the dynamic nature of the market and investor response to the strategic move of acquiring a wholly-owned subsidiary.

Despite the temporary setback in stock prices, industry experts express optimism regarding Gensol Engineering's future prospects, especially with the groundbreaking energy storage project in its portfolio.