Gensol Engineering Shares Surged 5% On Winning Bid For 116 MW Solar Projects In Gujarat

Gensol Engineering Ltd has announced that it has secured a bid for 116 megawatts (MW) of solar projects in Gujarat. These projects will be spread across 27 locations under the jurisdiction of Paschim Gujarat Vij Co. Ltd. (PGVCL), the state's electricity distribution company. This win represents a significant achievement for Gensol Engineering, marking their emergence as the winning bidder for these substantial solar projects. The estimated Engineering, Procurement, and Construction (EPC) revenue from these projects is around Rs 600 crore, and they are expected to become operational within 12 months following the issuance of the Letter of Award (LoA). The main aim of these projects is feeder-level solarisation, which means deploying solar power projects to meet the energy needs of agricultural feeders from a distribution sub-station.

Following the announcement, Gensol Engineering's share price surged by 5%, currently trading at Rs 980.0. Over the past year, the company's shares have delivered a remarkable return of 102%, and an even more impressive 223% over the past two years. In the last three years, the stock has skyrocketed by over 5,000%. The shares have a 52-week range of Rs 1,377.10 to Rs 459.87 on the Bombay Stock Exchange (BSE), and the company now boasts a market capitalization of Rs 3,548.88 crore.

In October 2023, Gensol Engineering issued bonus shares in a 2:1 ratio, distributing two free shares for every one share held by eligible investors on the record date. Last month, the company also won a significant bid for a 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project valued at Rs 1,340 crore from Gujarat Urja Vikas Nigam Limited (GUVNL). This project aims to supply electricity on an "on-demand" basis to Gujarat State's distribution companies (DISCOMs) during peak and off-peak hours, thereby extending the availability of renewable energy beyond solar hours, fulfilling Energy Storage Purchase Obligations, and enhancing grid resilience.

Gensol Engineering has reported a robust order book worth Rs 1,783 crore at the start of FY25. This order book, which is to be executed over the next 12 months, underscores a promising year ahead for the company and solidifies its position as a key player in the renewable energy and electric mobility industry. The company's diverse order book highlights its involvement in multiple sectors, each contributing significantly to its overall portfolio.

Founded in 2012, Gensol Engineering provides engineering, procurement, and construction (EPC) services for the development of solar power plants. The company has successfully installed numerous solar power plants and has also established a state-of-the-art electric vehicle (EV) manufacturing facility in Pune, India. This multifaceted approach not only strengthens Gensol's foothold in the renewable energy sector but also positions it as a leader in the evolving landscape of electric mobility.