Gensol Engineering share price hits lower circuit, crashes over 50% in 12 sessions; Here’s why

Gensol Engineering Ltd. share price hit another 5 per cent lower circuit on Wednesday, March 12, marking the sixth consecutive session of decline. The stock has fallen over 50 per cent in last 12 consecutive trading sessions, with six of those sessions resulting in it being locked in a lower circuit.

At 11:00 am, Gensol Engineering stock was trading at ₹276.05 on National Stock Exchange (NSE).

Gensol Engineering has entered oversold territory on the charts, with its Relative Strength Index (RSI) dropping to 14. An RSI below 30 signals that a stock is in the 'oversold' zone.

Why Gensol Engineering share price has been falling?

The company announced that its Chief Financial Officer (CFO), Ankit Jain, has resigned for personal reasons. Jain plans to pursue other career opportunities outside the company. His resignation will take effect on March 13, 2025, in compliance with SEBI regulations.

Gensol Engineering shares have drawn attention after CARE Ratings downgraded its rating due to delays in debt servicing. Following CARE's downgrade, ICRA also lowered its credit rating, accusing the company of falsifying certain loan repayment documents.

According to CNBC TV-18 report, Gensol Engineering's Chairman and MD, Anmol Singh Jaggi has refuted allegations of document falsification, stating that delays in debt servicing resulted from a liquidity mismatch while managing large-scale projects.

Additionally, the CMD affirmed his commitment to fully repaying the debt and expressed hope for a rating upgrade when agencies reassess their position in three months. Gensol currently has monthly debt obligations of ₹20 crore, requiring a total repayment of ₹60 crore over the next three months.

The promoters recently offloaded a 2.3 per cent stake, equivalent to 9,00,000 equity shares of the company. However, Gensol Engineering stated that its promoters have injected ₹29 crore by converting warrants into equity. The company further mentioned that these warrants would be converted into 4,43,934 equity shares at a rate of ₹871 per share.

The stock has declined by 75 per cent from its peak of ₹1,124, which it reached last year. In just the first two months of this year, it has fallen over 64 per cent, more than halving in value.

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