Gensol Engineering to Split Shares in 1:10 Ratio
Gensol Engineering, a company in the energy sector, has announced a stock split in the ratio of 1:10. This means that one share of ₹10 will be divided into ten shares of ₹1 each.
The company shared this update through an exchange filing. The decision was taken during the Extraordinary General Meeting (EGM) held on 12 April 2025. During the meeting, shareholders were presented with the proposal for the stock split.
Another proposal was also discussed in the meeting—to issue new shares to the promoter group on a priority basis. However, it is still unclear whether the proposals were approved. The company said they are waiting for the scrutinizer’s report.
What Does the Stock Split Mean?
Many people might not know what a share split is, so in this article, I will explain it in very simple language.
Let’s say you have 1 share of any company. Now if the company decides to split the share in a 1:10 ratio, it means that your 1 share will be divided into 10 parts.
Let me explain in more detail:
If you have 1 share, and the company splits the shares in a 1:10 ratio, then you will receive 10 shares in place of 1 share.
So, your total number of shares will become 10 + 1 = 11 shares (assuming you had 1 already and got 10 more after the split).
If you own one share of Gensol Engineering worth ₹10, it will now be split into 10 shares of ₹1 each. This makes the shares more affordable for small investors, though the overall value remains the same.
Why the Company Is in the News?
The company’s shares have seen a massive drop in recent months. Credit rating agencies ICRA and CARE Ratings downgraded Gensol Engineering to the default category, which caused investors to lose confidence.
Back in February 2025, Gensol’s stock was trading at around ₹740. But now, it is trading near ₹133. Even on the recent Friday, the stock fell by 5%.
Big Drop in Last 6 Months
The company’s stock has fallen over 88% in the past 6 months. On 9 October 2024, the stock price was ₹838.10, and the 52-week high was ₹1124.
Because of this continuous fall, investors and the market will be closely watching the stock on Tuesday.
A Positive Update from the Company
Despite the stock troubles, Gensol recently announced the successful commissioning of a solar power plant in Dhanbad, Jharkhand. This project was developed under a ₹40 crore EPC contract (EPC means Engineering, Procurement, and Construction).
Do Shareholders Benefit from Share Split?
This is a very good question. If any shareholder owns shares of a company and the company announces a share split, will the shareholder benefit?
Yes, there is a benefit.
Sometimes it may look like a loss just after the split, because the price of each share also decreases according to the split ratio. But in the long term, when the share price starts to rise again, shareholders can get very good returns.
For example:
If a share worth ₹1000 is split into 10 parts, each new share will be worth ₹100.
But if the company performs well in the future and the share price goes up, then the shareholder can make a big profit.
That’s why, if a good company is planning a share split, buying its shares can be beneficial.
Disclaimer:
The information provided in this article is meant only for educational and informational purposes. It is not intended to be taken as financial, investment, or trading advice. Readers are advised not to make any investment decisions solely based on the content shared here. Always do your own research and analysis before investing in the stock market.
Stock investments are subject to market risks, and prices can go up or down at any time. Past performance is not a guarantee of future results. If you are planning to invest, please consult a certified financial advisor or your stockbroker to understand the risks involved.