Amid stock market fluctuations, Gensol Engineering Limited saw a major drop in its share price on Friday. The stock declined by 4.22% from the previous day, closing at ₹321.20.
During the trading session, it even touched ₹303, marking its 52-week low. Currently, the stock is trading at more than a 70% discount from its peak of ₹1,124 last year.
This sharp fall came following an important announcement from the company.
Company’s Major Announcement
On March 7, Gensol Engineering Ltd informed stock exchanges that its board will meet on March 13 to consider several proposals, including a stock split and fundraising plans.
The company may raise funds through various methods such as Qualified Institutional Placement (QIP), preferential issues, or Foreign Currency Convertible Bonds (FCCB), subject to regulatory approvals.
Stock Split Under Consideration
The board will also review a stock split proposal. Currently, the face value of Gensol Engineering shares is ₹10. If approved, this will be the company’s first-ever stock split since it got listed.
Previous Bonus Shares Issued
Although Gensol has never done a stock split before, it has issued bonus shares twice:
October 2021 – Issued one bonus share for every three shares held (1:3).
October 2023 – Issued two bonus shares for every one share held (2:1).
Additionally, in September 2024, the company increased the size of its Qualified Institutional Placement (QIP) from ₹500 crore (approved in August 2023) to ₹750 crore.
Last year, Gensol also approved issuing 5.7 lakh shares at ₹986 per share on a preferential basis to select investors.
