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Gensol Engineering hit 5% upper circuit for third day in row; Details here
Gensol Engineering share price hit a 5 per cent upper circuit in trade on Thursday, at ₹63.14 per share on BSE for the third consecutive session. The northward movement in the stock came after the company's Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi resigned amid alleged fund diversion.
At 12:25 PM, Gensol Engineering shares were up 5 per cent at ₹63.14 per share on the BSE. In comparison, the BSE Sensex was down 0.16 per cent at 81,202.74. The market capitalisation of the company stood at ₹239.95 crore. The 52-week high of the stock was at ₹1,125.75 per share and the 52-week low of the stock was at ₹51.84 per share.
Gensol Engineering fund diversion case
In April, the Securities and Exchange Board of India (Sebi) issued an interim order against Anmol Singh Jaggi and Puneet Singh Jaggi over alleged fund diversion and fraudulent practices.
Furthermore, the market regulator directed Gensol Engineering to halt the proposed stock split. SEBI stated that the funds were allegedly used for luxury real estate purchases, complex fund routing, and the misuse of public company resources as though they were personal assets.
Sebi began investigating the company after multiple complaints and subsequent downgrades of Gensol's credit ratings by CARE Rating and Icra due to delays in servicing debt obligations by BluSmart Mobility, a related party of Gensol.
In the latest development, Indian Renewable Energy Development Agency (Ireda), a state-run financier, has filed a petition under Section 7 of the Insolvency and Bankruptcy Code against Gensol Engineering after the company defaulted on a ₹510 crore loan.
If the National Company Law Tribunal (NCLT) admits the insolvency petition, all creditors of the company are expected to file their claims with the court-appointed resolution professional for debt resolution, while the value of equity holdings is likely to be wiped out.
On April 25, Ireda initiated an internal review in accordance with Reserve Bank of India (RBI) guidelines and its own due diligence procedures. The review revealed that the promoters had diluted their shareholdings without obtaining the necessary approval from lenders, thereby breaching the terms of the contract. As a result, Ireda filed a complaint with the Economic Offences Wing against Gensol on April 24 regarding these issues.
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