Shares of Gensol Engineering, a company that specializes in solar power, fell 5% to ₹289.90 during early trading on the Bombay Stock Exchange (BSE) on Tuesday, March 11. This drop happened after the company’s promoters said they would invest ₹28.99 crore by changing some warrants into shares.
In a statement, Gensol Engineering confirmed that its promoters are showing strong support for the company’s future by investing ₹28,99,99,885.50 (that’s Twenty-Eight Crores and Ninety-Nine Lakhs Ninety-Nine Thousand Eight Hundred Eighty-Five and Fifty Paise). The promoters will buy a total of 4,43,934 shares at ₹871 each. This money will help Gensol grow in renewable energy and electric vehicles.
This new investment comes after some news that credit agencies downgraded the company’s ratings. Gensol also announced that its Chief Financial Officer (CFO) resigned to seek other opportunities. On Monday, the company’s shares already closed down by 5% at ₹305.15.
Gensol Engineering is now under the Additional Surveillance Measure (ASM): Stage 1, which is a rule used by the Securities and Exchange Board of India (SEBI) to protect investors from trading that is too risky or speculative. Being in ASM Stage 1 means the stock is experiencing high price changes or volatility.