- Rs 400 crore to be raised through the issuance of Foreign Currency Convertible Bonds (FCCBs)
- Rs 200 crore to be raised through the issuance of warrants to promoters
- Currently, Gensol Engineering has a debt of Rs 1,146 crore against reserves of Rs. 589 crore, resulting in a debt-equity ratio of 1.95.
NE BUSINESS BUREAU
NEW DELHI, MAR 14
Gensol Engineering Limited on Thursday announced that its Board of Directors, in its meeting held earlier on Thursday, has approved fund-raising initiatives amounting to Rs. 600 crore aimed at significantly enhancing its financial standing. This move underscores the company’s strong commitment to achieving sustainable growth, reducing debt, and maximizing value for its stakeholders.
The Board of Directors has approved and passed resolutions for the following fund-raise plan:
- 400 crore to be raised through the issuance of Foreign Currency Convertible Bonds (FCCBs); and
- 200 crore to be raised through the issuance of warrants to promoters.
This initiative, combined with the company’s ongoing divestments, including the sale of vehicles and the sale of a subsidiary, is expected to significantly improve Gensol’s debt- equity ratio, positioning it for long-term financial strength and resilience.
Key financial impact of the fund-raise and divestments
- Currently, Gensol Engineering has a debt of 1,146 crore against reserves of Rs. 589 crore, resulting in a debt-equity ratio of 1.95.
- With this announcement of Rs. 600 crore fund-raise, the company’s reserves are expected to increase to approximately Rs. 1,200 crore.
- Additionally, with 615 crore of divestments underway, the company’s debt will be reduced to approximately Rs. 530 crore.
- These measures will lead to a significantly improved and healthy debt-equity ratio of 0.44.
Speaking on the development, Anmol Singh Jaggi, Managing Director at Gensol Engineering Limited, stated: “Our foremost priority is to strengthen Gensol’s balance sheet, and we are taking bold and decisive steps to address it starting with this fund-raise. This Rs. 600 cr. fund-raise, coupled with the strategic divestments, will be crucial in strengthening and positioning the company for sustained growth. For years, we have delivered high value to our shareholders, and that remains our top priority. We are sharply
focused on achieving a net-debt zero status, maintaining financial discipline, and unlocking even greater potential for our investors.”
