Gensol Engineering Stock Continues to Plummet

Gensol Engineering's stock price has been on a downward spiral, with investors showing no signs of confidence despite a recent promoter infusion of Rs 29 crore. On March 11, the stock hit its 5% lower circuit, trading at Rs 290.55 on the NSE, marking its 11th straight session of losses.

The stock has now fallen 70% from its 52-week high, weighed down by multiple rating downgrades and financial concerns.

Promoter Infusion Fails to Boost Sentiment

In an attempt to instill confidence, Gensol’s promoters announced an infusion of Rs 29 crore by converting 4,43,934 warrants into equity shares at a price of Rs 871 per share.

However, this move failed to reverse the bearish trend, as investors continued to dump the stock. The selloff intensified after reports emerged that the promoters had offloaded 2.3% of their stake in the company in the previous session, selling 9 lakh shares.

Debt Servicing Issues and Ratings Downgrade

Gensol Engineering has been under scrutiny for its delays in servicing term loan obligations. Credit rating agency ICRA recently downgraded the company’s rating after receiving negative feedback from lenders regarding its debt servicing performance.

Adding to investor concerns, ICRA alleged that Gensol may have falsified financial data related to its debts.

• Gensol denies any wrongdoing and has launched an internal investigation to probe these allegations.
• The company claims it is not involved in any falsification and aims to resolve debt servicing issues soon.

Despite these assurances, the market remains unconvinced, and the stock continues to face heavy selling pressure.

Market Reaction and Future Outlook

The continuous decline in Gensol Engineering’s stock reflects widespread investor concerns about:

• Debt repayment issues and alleged financial misreporting.
• Loss of confidence in the company’s management.
• Uncertainty over future financial stability, despite promoter support.

With the stock already down 70% from its 52-week high, the coming weeks will be crucial in determining whether Gensol can regain investor trust or face further declines. The company’s internal investigation results and potential corrective measures will be closely watched by the market.

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