Gensol Engineering Ltd Tackles Debt with Strategic Divestments

Gensol Engineering Ltd is addressing recent credit rating downgrades through asset divestments aimed at reducing debt. The firm plans to sell electric vehicles and a subsidiary to cut its liabilities. It emphasizes its commitment to transparency and aims to achieve zero net debt by leveraging proceeds from these sales.

Gensol Engineering Ltd (GEL) announced plans to address recent credit rating downgrades and improve liquidity by selling assets, aiming to reduce debt significantly.

In response to ratings cuts by CARE and ICRA, the company cites short-term liquidity mismatches and emphasizes its strong financial position with an impressive order book and substantial growth in revenue and EBITDA.

Gensol denies any involvement in "falsification claims" and is committed to transparency and accountability, with plans for strategic divestments to lower its debt-equity ratio to 0.8 and eventually achieve zero net debt status.

(With inputs from agencies.)