Gensol Engineering secures $108 mn in equity funding

Gensol Engineering, a solar engineering and consulting firm, successfully garnered Rs 9 billion (~$108 million) in equity capital through convertible warrants on a preferential basis. The funding round witnessed participation from both international and domestic investors, including the Elara India Opportunity Fund, Aries Opportunities Fund, and Tano Investment Opportunities Fund. Anmol Singh Jaggi, the Chairperson and Managing Director at Gensol, emphasised the company's commitment to financial excellence and its role in India's transition to green energy and clean mobility. The capital infusion is intended to bolster Gensol's financial standing, supporting initiatives such as working capital enhancement, pursuing inorganic growth opportunities, and further investment in subsidiaries. The proposed capital raise is contingent on shareholder approval at the extraordinary general meeting scheduled for March 2, 2024, and compliance with SEBI Regulations. Gensol, operating in solar engineering, procurement, construction (EPC), electric vehicle leasing, and manufacturing, aims for a substantial fivefold growth over the next three years. The company has recently installed ground-mounted and rooftop solar power plants, boasting a combined capacity exceeding 600 MW. The firm's financial performance has been noteworthy, evident in its net profit of Rs 123.1 million (~$1.5 million) in the third quarter of 2023, marking a significant 78% year-over-year increase from a previous net loss of Rs 19 million (~$228,578). This positive trend is attributed to a surge in EPC orders received by Gensol. In October of the preceding year, Gensol secured a Rs 3.02 billion ($36.3 million) solar EPC contract for a 62 MW solar project from Maharashtra State Power Generation Company. Additionally, earlier this year, the company secured a Rs 1.39 billion (~$18.06 million) EPC contract from Sarda Energy for a 33 MW captive solar power project.