Gensol Engineering Ltd's promoter sells share to reduce pledged shares and boost stability

Gensol Engineering Limited (BSE: 542851 | NSE: GENSOL), a leading player in the renewable energy and electric mobility sectors, wishes to assure investors of its financial fundamentals and continued commitment to long-term growth following a strategic share sale by its promoter. This transaction represents less than 1% of the total promoter shareholding.

The recent sale of 2,15,000 shares by Anmol Singh Jaggi is a strategic step aimed solely at reducing the quantum of pledged shares, thereby reinforcing the company's financial stability. This transaction will significantly reduce the promoter's pledge and move the company toward its goal of becoming pledge-free. The shares have been sold to reputed long-term investors.

Key Highlights:

- Total Promoter Shareholding: Promoters collectively own 2.38 crore shares which represent 62.5% of the company shareholding, demonstrating their long-term commitment to the business.

- Reduction of Promoter Pledge: As of December 31, 2024, promoter pledge stood at 81.7%, largely collateralizing long-term debt from IREDA and PFC for the EV leasing business, as well as Loan Against Shares (LAS). The proceeds from this share sale will be utilized entirely to release pledged shares and repay associated loans, with no other underlying objective.

- Promoter Pledge Details: Promoters have pledged 1.01 crore shares with IREDA and PFC to secure long-term debt for the EV leasing business. Following a transaction with Refex Mobility for the sale of EV vehicles, 0.26 crore pledged shares will be released. We are trying to work on similar transactions for EV car sales, to ensure the complete release of the 1.01 crore pledged shares.

- Loan Against Shares Details: Promoters have pledged 0.89 crore shares as Loan Against Shares (LAS). The repayment from this share sale will partially pay the LAS lender, reducing the pledged shares and strengthening the company's financial position.

- Commitment to Financial Stability: This move underscores the promoters' confidence in Gensol's fundamentals while enhancing financial flexibility. By reducing pledged shares, the company is minimizing potential market concerns regarding pledged holdings.

Commenting on the development, Mr. Anmol Singh Jaggi, Chairman and Managing Director of Gensol Engineering Limited, stated: "The decision to sell a portion of my shareholding is driven by our commitment to make Gensol a pledge-free company. The pledged shares primarily served as collateral for long-term debt for our EV leasing business and Loan Against Shares. This transaction will partially repay our LAS lenders and reduce our pledge levels. All proceeds from this share sale are being directed toward the reduction of pledged shares. We remain steadfast in our growth plans and confident in our long-term value creation for all stakeholders."

Shares of Gensol Engineering Ltd was last trading in BSE at Rs. 541.50 as compared to the previous close of Rs. 566.10. The total number of shares traded during the day was 58714 in over 3184 trades.

The stock hit an intraday high of Rs. 578.00 and intraday low of 530.00. The net turnover during the day was Rs. 31893922.00.

Source : Equity Bulls

Keywords

GensolEngineering INE06H201014 Promoter ShareSale