New Delhi, Feb. 25 -- BluSmart Mobility co-founders Puneet Singh Jaggi and Anmol Singh Jaggi's listed renewable energy firm Gensol Engineering will hive off its US subsidiary for Rs 350 crore.
Gensol Engineering will sell Scorpius Trackers Inc. to a major US-based renewable energy solutions provider as per a non-binding agreement, the company said in a disclosure to the exchanges without revealing the name of the buyer.
"This transaction underscores Gensol's strategy to monetize high-value assets, unlock capital from its subsidiaries, and reinvest in its core growth areas, strengthening the company's financial position," the disclosure said.
The sale, to be completed by March 2026 in two tranches, will also include the transfer of exclusive and global intellectual property (IP) rights--barring India--for the US unit's solar tracking technology. "The monetization of Scorpius Trackers' US business enables us to reinvest in high-growth opportunities in India while strengthening our financial position," Anmol Singh Jaggi, chairman and managing director, of the firm said. Puneet Singh Jaggi serves as whole-time director.
Gensol Engineering will use the proceeds from the sale to expand Scorpius Trackers' India operations, fuel its solar engineering, procurement, and construction (EPC) business growth, and support clean energy initiatives, the statement said.
Shares of the company, co-founded in 2007 by brothers Anmol Singh Jaggi and Puneet Singh Jaggi, have been on a downtrend, slumping nearly 62% since June last year. Since January, the stock has plunged 26% to Rs 569 on the BSE.
The sale announcement comes a few days after the company declared disappointing earnings for Oct-Dec. The net profit declined 6% even as revenues expanded 30%. The company also bagged large domestic orders worth nearly Rs 3,000 crore, including a contract from NTPC Renewable Energy, during the quarter.
Published by HT Digital Content Services with permission from VC Circle.