Shares of Gensol Engineering, an Ahmedabad-based solar engineering, procurement, and construction (EPC) company extended losses for the eighth consecutive day on Friday, March 7. The solar EPC stock tumbled 9.6 per cent to hit a fresh 52-week low at Rs 303 per share on the BSE. With this, it has declined a total of 47 per cent over the past eight sessions. The solar EPC stock had hit lower circuits for the three previous sessions, excluding Friday.
Gensol Engineering, established in 2012, is the flagship company of the Gensol Group and focuses on providing EPC services for the solar power industry. The company also manufacture electric vehicles (EVs) and provides EV leasing services.
Gensol Engineering initially listed its shares on the BSE SME platform on October 11, 2019, and later transitioned to the BSE main platform in July 2023. In September 2023, it was also listed on the National Stock Exchange (NSE).
Why Gensol Engineering is Falling?
Earlier this week, on March 3, Care Ratings downgraded the company's bank facility rating from BB+ to D. Following this, the stock plummeted 20 per cent the next day, hitting the lower circuit limit. The rating was downgraded "on account of ongoing delays in the servicing of term loan obligation as per feedback from its lenders," Care Ratings said.
A day later, ICRA too downgraded its credit rating from BBB- to D. Apart from delays in debt servicing, ICRA cited concerns over documents provided by the company regarding its debt servicing track record, which appeared to be "falsified." This raises concerns about its corporate governance practices, including its liquidity position, ICRA said.
ICRA also noted a decline in the company’s financial flexibility, with the promoter increasing their share pledge in the company to 85.5 per cent in February 2025, up from 79.8 per cent in September 2024. This rise in share pledging, along with falling share price, could make it harder for the company to raise capital for future growth, the rating agency said.
Post ICRA’s downgrade, the stock fell another 10 per cent on March 5, and another 10 per cent the next day, March 6, hitting the lower circuit for the third consecutive day.
Gensol Engineering’s Response
Giving clarifications on credit rating downgrades, the company, in a filing dated March 5, said, “The rating downgrade happened due to short-term liquidity mismatch which is improving by way of customer payments. Further, we deny any involvement in falsification claims and would be setting up a committee to comprehensively review the matter.”
Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering, said, “Gensol continues to maintain strong revenue visibility supported by a healthy order book across our key business segments. We have also undertaken multiple initiatives aimed at strengthening our balance sheet, including focused efforts towards debt reduction and optimizing working capital. We remain confident in the long-term growth potential of the business and are committed to creating sustainable value for all our stakeholders. Furthermore, we will regularly keep our stakeholders informed about business developments.”
Gensol Engineering’s CFO Resigns
After the massive rout in its share price, the company informed the exchanges that its chief financial officer (CFO) Ankit Jain, has resigned, citing personal reasons and his decision to explore other career opportunities. Jain has been replaced by Jabirmahendi Mohammedraza Aga, with effect from March 7.
“In his career, he (Jabirmahendi Aga) has played a crucial role in navigating complex regulatory environments, corporate governance, and establishing financial frameworks that support long-term organisational sustainability,” the company said in an exchange filing dated March 7.
