Gensol Engineering promoters' saw their shareholding more than halve from December levels as the company faces probes from multiple agencies, including Sebi. Cofounders Anmol Singh Jaggi and Puneet Singh Jaggi, their mother Jasminder Kaur, and promoter group Gensol Ventures Pvt Ltd lost 57% stake since December 31, as per exchange data till Tuesday.
As of December 2024, the promoters held 2.8 crore shares, or 62.65% stake, in Gensol Engineering, showed shareholding data with BSE. Of this, 81.7% was pledged. By the end of March 2025, the shares held by promoters and the promoter group dropped to 35.87%, of which 95.1% was pledged.
By April 22, creditors took control of 9.19% more shares out of the promoters' stake, leaving them with 26.68% shareholding.
The flurry of pledged shares invocations follows regulatory troubles hounding Gensol and its promoters. Early in March, credit rating agencies ICRA and CARE Ratings downgraded Gensol's credit facilities worth Rs 2,050 crore and Rs 716 crore, respectively. The former claimed that the green energy company had falsified certain debt servicing documents, while the latter flagged delay in loan repayments.
Gensol shares have been locked in lower circuit of 5% since open of trade on Wednesday, compared with a 0.21% rise in the benchmark Sensex. The stock has fallen 80.5% since March 3, when the credit downgrades began. The counter has dropped 87% year to date, and nearly 90% in the past 12 months.
As per an interim order dated April 15, the Securities and Exchange Board of India found the Jaggi brothers guilty of siphoning company funds for personal gains and falsifying no overdue certificates from power financiers Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). A regulatory probe found Rs 262 crore out of the loans granted by Ireda and PFC to buy EVs for Gensol's sister concern, BluSmart, missing. The market regulator has banned Gensol Engineering and its promoters from the securities market, and put on hold a 1:10 stock split.
"The promoters were running a listed public company as if it were a proprietary firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggybank," Sebi noted in its interim order dated April 15.
In accordance with Sebi's order, Anmol Jaggi and Puneet Jaggi have stepped down from the board and ceased directorial duties. Following their exit, directors Arun Menon, Kuljit Singh Popli and Harsh Singh have also stepped down from the board.
The Enforcement Directorate may launch an investigation into the alleged diversion of funds and financial misconduct by Gensol promoters, official sources had told ET. The federal probe agency has also frozen a fresh few lakh shares in Gensol of a person being investigated in a separate case linked to the Mahadev betting app scam, they said.
Meanwhile, lender Ireda and PFC have initiated internal probes to identify discrepancies in a Rs 663 crore loan disbursed to Gensol Engineering to purchase EVs for sister concern BluSmart, according to sources familiar with the matter.
Meanwhile, lenders to Gensol and BluSmart may move the National Company Law Tribunal to protect their interests.
As of December 2024, the promoters held 2.8 crore shares, or 62.65% stake, in Gensol Engineering, showed shareholding data with BSE. Of this, 81.7% was pledged. By the end of March 2025, the shares held by promoters and the promoter group dropped to 35.87%, of which 95.1% was pledged.
By April 22, creditors took control of 9.19% more shares out of the promoters' stake, leaving them with 26.68% shareholding.
The flurry of pledged shares invocations follows regulatory troubles hounding Gensol and its promoters. Early in March, credit rating agencies ICRA and CARE Ratings downgraded Gensol's credit facilities worth Rs 2,050 crore and Rs 716 crore, respectively. The former claimed that the green energy company had falsified certain debt servicing documents, while the latter flagged delay in loan repayments.
Gensol shares have been locked in lower circuit of 5% since open of trade on Wednesday, compared with a 0.21% rise in the benchmark Sensex. The stock has fallen 80.5% since March 3, when the credit downgrades began. The counter has dropped 87% year to date, and nearly 90% in the past 12 months.
As per an interim order dated April 15, the Securities and Exchange Board of India found the Jaggi brothers guilty of siphoning company funds for personal gains and falsifying no overdue certificates from power financiers Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). A regulatory probe found Rs 262 crore out of the loans granted by Ireda and PFC to buy EVs for Gensol's sister concern, BluSmart, missing. The market regulator has banned Gensol Engineering and its promoters from the securities market, and put on hold a 1:10 stock split.
"The promoters were running a listed public company as if it were a proprietary firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggybank," Sebi noted in its interim order dated April 15.
In accordance with Sebi's order, Anmol Jaggi and Puneet Jaggi have stepped down from the board and ceased directorial duties. Following their exit, directors Arun Menon, Kuljit Singh Popli and Harsh Singh have also stepped down from the board.
The Enforcement Directorate may launch an investigation into the alleged diversion of funds and financial misconduct by Gensol promoters, official sources had told ET. The federal probe agency has also frozen a fresh few lakh shares in Gensol of a person being investigated in a separate case linked to the Mahadev betting app scam, they said.
Meanwhile, lender Ireda and PFC have initiated internal probes to identify discrepancies in a Rs 663 crore loan disbursed to Gensol Engineering to purchase EVs for sister concern BluSmart, according to sources familiar with the matter.
Meanwhile, lenders to Gensol and BluSmart may move the National Company Law Tribunal to protect their interests.
