1:10 Stock Split Declared For The 1st Time: Here's How Traders Are Positioning For The Record Date

Solar consultancy and EPC are the activities of Gensol Engineering Ltd. The company is one of India's top ten EPC companies. Offering comprehensive Engineering, Procurement, and Construction (EPC) services for solar projects throughout the globe is the company's area of expertise. After the Board announced a 1:10 stock split for the first time since its founding, Gensol Engineering's shares finished Thursday at a 5% lower circuit limit at Rs 262.25 on the NSE, with a market capitalisation of Rs 994.19Cr.

Gensol Engineering Stock Split

The Board of Directors "Considered, approved and recommended resolution through general meeting for alteration of the capital of the Company by subdivision/split of existing equity share of the Company from 1 (One) equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, into 10 (Ten) equity shares having face value of Rs. 1/- (Rupees One only) each, fully paid-up. The record date for the purpose of the above sub-division/split of Equity Shares shall be decided after obtaining approval of the shareholders and will be intimated in due course," said Gensol Engineering in a stock exchange filing on March 13, 2025.

Gensol Engineering Warrants Issue

The Board also approved "The issue of up to 3,57,14,285 (Three Crore Fifty Seven Lakhs Fourteen Thousand Two Hundred Eighty Five) warrants of the Company, of Face value of Rs. 1/- each carrying a right exercisable by the warrant holder to subscribe to one Equity share per warrant in one or more traches within 18 Months from the date of allotment for cash, to persons belonging to "Promoter Group" Category on preferential basis at an issue price of Rs. 56.00 (Rupees Fifty Six Only)(after adjustment of sub-division of equity shares) by way of a preferential issue on a private placement basis aggregating upto Rs. 199,99,99,960 (Rupees One Hundred Crores Ninety Nine Lakhs Ninety Nine Thousand Nine Hundred Sixty Only)," the company informed stock exchanges on Thursday.

"We would like to clarify that the issuance of promoter warrants is happening at ₹56 per share of ₹1 face value, which is equivalent to ₹560 per share of ₹10 face value, considering the 10:1 stock split approved by the Board. At ₹56 per ₹1 face value share, the pricing represents a 213% premium over the current market price of ₹262 per share (₹10 face value adjusted). This underscores the promoters' strong confidence in the company's future growth and value creation potential. We hope this clears any confusion regarding the valuation and remains aligned with our commitment to transparency with our stakeholders," Gensol Engineering confirmed.

Gensol Engineering Fundraising Proposal

Today, Gensol Engineering Limited said that its Board of Directors authorised 600 crore in fund-raising activities to improve its financial situation during a meeting. Foreign Currency Convertible Bonds (FCCBs) will be issued to raise Rs. 400 crore, while promoter warrants will be issued to raise Rs. 200 crore.

Anmol Singh Jaggi, Managing Director at Gensol Engineering Limited, stated: "Our foremost priority is to strengthen Gensol's balance sheet, and we are taking bold and decisive steps to address it starting with this fund-raise. This Rs. 600 cr. fund-raise, coupled with the strategic divestments, will be crucial in strengthening and positioning the company for sustained growth. For years, we have delivered high value to our shareholders, and that remains our top priority. We are sharply focused on achieving a net-debt zero status, maintaining financial discipline, and unlocking even greater potential for our investors."

Gensol Engineering Share Price Target

"Gensol Engineering is oversold and also bearish on the Daily charts with strong resistance at 276. A Daily close below support of 262 could lead to a target of 234 in the near term," commented A R Ramachandran, Independent Research Analyst.

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