Gensol Engineering Unveils Bold Rs 600 Crore Fundraising Plan

Gensol Engineering plans to raise Rs 600 crore through foreign currency convertible bonds and warrants. The initiative aims to enhance growth, reduce debt, and boost stakeholder value. Rs 400 crore will come from bonds and Rs 200 crore via warrants. This move will strengthen the company's financial standing.

Gensol Engineering has announced a strategic plan to raise Rs 600 crore by issuing foreign currency convertible bonds and warrants. The company aims to achieve sustainable growth, reduce its debt load, and maximize value for stakeholders, as disclosed in its latest exchange filing.

Approved by the Board of Directors, the fundraising initiative will see Rs 400 crore raised through foreign currency convertible bonds and an additional Rs 200 crore from warrants issued to promoters. Currently, Gensol Engineering holds Rs 1,146 crore in debt against reserves of Rs 589 crore, giving a debt-equity ratio of 1.95.

The fundraising, along with Rs 615 crore in divestments, is expected to reduce the company's debt to Rs 530 crore, while reserves will increase to approximately Rs 1,200 crore. Managing Director Anmol Singh Jaggi emphasized the importance of these steps for strengthening Gensol's balance sheet and positioning it for sustained growth.

(With inputs from agencies.)