Stock of this consulting services company has zoomed 594% thus far in 2022

Gensol Engineering was locked at 5 per cent upper circuit band for a third straight day

bull, markets, shares, stocks, bse, growth, sensex, nse
SI Reporter Mumbai
3 min read Last Updated : Jul 19 2022 | 2:01 PM IST
Shares of Gensol Engineering were locked at 5 per cent upper circuit band for a third straight day on Tuesday, at Rs 752.10. This was also its fresh life-time high. In the past one month, the stock has surged 59 per cent, as compared to 6 per cent rise in the S&P BSE Sensex.

Thus far in calendar year 2022, the market price of Gensol Engineering has zoomed 594 per cent from a level of Rs 108.35 touched on December 31, 2021. In comparison, the benchmark index was down 8 per cent during the same period.

Gensol Engineering is a part of Gensol group of companies, which offers EPC and solar advisory services. The company is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across many countries, including India.

On July 7, 2022, Gensol Engineering had signed a termsheet to pick up majority stake in a US-based electric vehicle manufacturing startup. The investment is intended to accelerate Gensol’s plan to deliver a robust domestically manufactured electric vehicle (EV) in India. With this deal Gensol foresees an increment in revenue by Rs 500-600 crore for FY24.

The stake buy is subject to due diligence clearance including FEMA Act. The majority stake acquisition of this startup will allow Gensol to have an in-house manufacturing facility for capturing the highly explosive growth of the EV market, keeping in mind that the case for immediate electrification of consumer transport is undeniable, the company said in statement. Gensol further said it aims to set up its R&D center for technology development and a start of production (SOP) in the first quarter of 2023 in Pune, India with a capacity of 12000 cars per year in the first phase.

Currently, Gensol Engineering only listed on BSE in SME platform. The trading, clearing and settlement in the SME segment is done on a T+2 basis and requires to be compulsorily settled in demat mode.

The company had received the consent on June 10, 2022 for listing the equity shares of the company from BSE SME platform to main board of BSE.

As a consequence, the company will be able to unlock more value for the shareholders by unleashing it shares towards larger public reach, since the lot size restrictions will be eliminated. This will lead to more wealth creation for shareholders, apart from opening a gateway of liquidity for the company, as evident from the statistics available with the BSE, the company had said.

As on March 31, 2022, the promoters held 71.17 per cent stake, while remaining 28.83 per cent holding are with individual shareholders (25.76 per cent) and others. The company has total 10.93 million outstanding equity shares, the shareholding pattern data shows.



One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Buzzing stocksGensol groupMarkets

Next Story