Shares of Gensol Engineering jumped 10% on February 7 after the construction engineering company announced that it raised Rs 900 crore through the preferential issue of convertible warrants.

Gensol Engineering’s shares hit an intraday high of Rs 1,047, 9.9% higher than its previous closing price on the National Stock Exchange (NSE). At 02:05 pm, the stock was trading 8.14% higher at Rs 1,127.95.

According to the company’s exchange filing, its board of directors approved the preferential issue of 1.03 crore warrants with a face value of Rs 10 each in one or more tranches within 18 months on a private placement basis to the promoter and non-promoter group to raise up to Rs 900 crore. 

The warrants carry a right exercisable by the warrant holder to subscribe to one equity share per each. The capital raise is subject to approval from shareholders at the company’s Extraordinary General Meeting (EGM) to be held on March 2, 2024, along with other statutory approvals in compliance with SEBI Regulations.

The company said in the press release that the equity fund raise saw participation from both international and domestic players, including foreign portfolio investors like FPIs Aries Opportunities Fund, Elara India Opportunity Fund and Tano Investment Opportunities Fund.