Gensol Engineering Falls 10% As CFO Resigns; Stock Down 73% In 9 Months: Key Reasons – News18
Last Updated:
Gensol Engineering shares tumbled 10% after the resignation of its CFO, extending its massive 73% decline over the past nine months. What’s driving the stock crash?
Gensol Engineering Shares Decline
Gensol Engineering Shares Fall: Shares of Gensol Engineering continued their downward trajectory for the eighth consecutive session on Friday, March 7, as the stock plunged by 9.6%, hitting a low of Rs 303 on the BSE. The decline followed the company’s announcement that its Chief Financial Officer (CFO), Ankit Jain, had resigned to “pursue other opportunities.” In an exchange filing, Gensol Engineering confirmed that Jain’s resignation was effective as of March 6, 2025, and expressed its gratitude for his contributions during his tenure.
The company also announced the appointment of Jabirmahendi Mohammedraza Aga as the new CFO. Aga, who has been with the Gensol Group, brings significant experience in corporate finance, risk management, investor relations, and financial reporting, with a proven track record of enhancing profitability and shareholder value.
Jain cited personal reasons and his pursuit of other professional avenues as the reason for his resignation from the post of CFO.
The drop in Gensol Engineering’s share price continued a losing streak that has persisted over the past seven trading sessions. Just a day earlier, on Thursday, the stock had fallen by 10%, hitting its lower circuit limit at Rs 335.35. This slide in stock price came after the company’s credit ratings were downgraded by both ICRA and CARE Ratings.
ICRA downgraded the credit ratings on various loan facilities totaling Rs 2,050 crore, including a long-term fund-based term loan of Rs 925 crore and a fund-based cash credit facility of Rs 718.5 crore, both of which were downgraded from [ICRA]BBB- (Stable) to [ICRA]D. Additionally, long-term and short-term bank guarantee facilities worth Rs 406.5 crore and a sub-limit bank guarantee of Rs 51.3 crore were also downgraded to [ICRA]D.
Similarly, CARE Ratings downgraded the credit ratings for bank facilities totaling Rs 716 crore to CARE D, signaling default or high credit risk. The long-term bank facilities of Rs 639.7 crore were downgraded from CARE BB+ (Stable) to CARE D, while the long-term/short-term bank facilities of Rs 76.3 crore were downgraded from CARE BB+ (Stable)/CARE A4+ to CARE D.
Gensol Engineering’s shares have experienced a dramatic 73% decline over the past nine months, plunging from Rs 1,126 to Rs 303.
