The share price of Gensol Engineering has been on a downward spiral, leaving investors worried. Over the past week, shares have nosedived nearly 40%, with the pressure mounting after credit rating downgrades and promoter stake sales.
In today’s trading session, the share price of the company hit a low of Rs 308 on the NSE, falling over 4% in the early hours. The promoters of Gensol are also the founders of electric can aggregator, BluSmart.
Let’s take a look at the key reasons why the share price of Gensol Engineering is on a downward trend.
Credit rating downgrades
Brokerage firms such as ICRA and CARE Ratings recently downgraded Gensol Engineering’s credit rating, citing a liquidity mismatch and delays in loan repayments. For now, the rating cut has dented investor confidence.
The troubles began when ICRA downgraded Gensol’s rating from BBB- (Stable) to D (Default), citing concerns over the company’s ability to service its debt.
Another concerning factor highlighted by ICRA is the increasing percentage of pledged promoter shares, which jumped from 79.8% in September 2024 to 85.5% in February 2025. Moreover, ICRA pointed out issues with BluSmart, an EV ride-hailing company linked to Gensol, which has reportedly delayed payments on its Non-Convertible Debentures (NCDs).
Just a day after ICRA’s downgrade, CARE Ratings also took a grim view of Gensol’s financials. On March 4, CARE Ratings downgraded the company’s long-term bank facilities worth Rs 639.7 crore to CARE D (Default) from the earlier BB+ (Stable). The downgrade wasn’t limited to long-term facilities – other short-term and long-term bank facilities also saw their ratings slashed, reflecting heightened risk.
Gensol – Promoter stake sale
One of the key reasons behind the latest slump is the sale of 9 lakh shares (about 2.37% of total equity) by the promoters.
“The promoters have sold approximately 2.37% of total equity shares of the company, amounting to 9,00,000 shares, to unlock liquidity that will be reinvested into the business through equity infusion. This step is part of a strategy aimed at reinforcing the company’s balance sheet and supporting stability,” said the company in an exchange filing on March 7.
According to the company, this move is aimed at unlocking liquidity and reinvesting the proceeds into the business. However, these types of sale also in a way raise concerns among the investors about management confidence in the company’s future.
The promoters still hold a 59.7% stake, but the market remains cautious.
Stock split and fundraising on the horizon
In a bid to regain momentum, the company’s board is set to meet on March 13 to discuss key strategic decisions, including a stock split to make shares more affordable to retail investors. Moreover, on fundraising through equity issuance or foreign currency convertible bonds.
Gensol Engineering stock performance
Gensol Engineering share price has been on a steep decline, leaving investors worried. Over the past year, the stock has lost nearly 66% of its value, falling from its 52-week high of Rs 1,124.90 to its current price of Rs 308.80. The sharp drop has brought the stock close to its 52-week low of Rs 307.25, just about 0.5% away.
This decline in the share price of the company has been consistent across different timeframes. In the past five days, the share price of Gensol Engineering has fallen by 39%, while in the last one month, it has dropped by 58%. Over the past six months, it has lost 66% of its value, and since the beginning of 2025, it has declined by 60%. Over the past year, the stock has plunged by 66.43%.