5% Upper Circuit Stock To Mull Fundraising After 2:1 Bonus Shares

With a market valuation of Rs 3,613.64 Cr, Gensol Engineering Ltd is a small-cap construction services firm. Following the announcement by the company on its plans to raise funds through the preferential issuance of securities to individuals who fall under the promoter/promoter group/non-promoter group category, the shares commenced on Friday at Rs 954.15 per share or at a 5% upper circuit limit.

"Pursuant to regulation 29(1)(d) of the SEBI (LODR) Regulation, 2015, notice is hereby given that a meeting of Board of Director of the Company will be held on Tuesday, February 6, 2024, inter alia; (i) to consider and approve the proposal of raising funds by way of preferential issue of Securities to the person belonging to promoter/promoter group/Nonpromoter group Category, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the Company. (ii) Any other matter with the permission of chair," said Gensol Engineering in a stock exchange filing.

"Further, as per the Company's Code of Conduct for Prohibition of Insider Trading, the Trading Window for dealing in securities of the Company will remain closed with effect from close of business hours of 1st February, 2024 till 48 hours after the conclusion of the meeting of the Board i.e. till end of day, Tuesday, 6th February, 2024. We request you to kindly take this on record and consider the above in accordance with Regulations 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended," said Gensol Engineering in a regulatory filing.

The above fundraising plan came after Gensol Engineering traded ex-bonus on 17th October 2023 for a 2:1 bonus share allotment. The firm recorded total revenue for the quarter ended December 31, 2023, at Rs 227 Crore, up 335% from Rs 52 Crore in Q3 FY23. The firm reported that EBITDA jumped by 312% to Rs 70 Crore in Q3 FY24 from Rs 17 Crore in Q3 FY23, while EBITDA margin reached 30.8% in Q3 FY24 from 32.2% in Q3 FY23. According to the company, PAT for Q3 FY24 was Rs 12 Crore, whereas Q3 FY23 had a net loss of Rs 2 Crore.

Mr. Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Limited said, "As we continue to spearhead India's energy revolution by leading the charge in Green Hydrogen and tapping into high-growth projects for a greener future, Gensol remains at the forefront of driving innovation, unlocking immense potential for the nation's renewable energy integration.

Reflecting on our performance in the first nine months of fiscal year 2024, we are pleased to report robust results. This underscores our dedication to sustained growth and innovation in renewable energy and eMobility sectors. Our ability to drive top-line revenue and enhance bottom-line performance through prudent financial management and operational excellence positions us well for continued success in the upcoming quarters."