Latest news with #IREDA
Business Upturn
21 hours ago
- Business
- Business Upturn
IREDA's insolvency plea against Gensol Engineering admitted over Rs 510 crore default
By Aditya Bhagchandani Published on July 23, 2025, 15:26 IST The National Company Law Tribunal (NCLT) Ahmedabad Bench has admitted a petition filed by Indian Renewable Energy Development Agency Ltd (IREDA) to initiate insolvency proceedings against Gensol Engineering Ltd over a loan default of ₹510.10 crore. The order, delivered on June 13, 2025, by the bench of Justice Shammi Khan (Judicial Member) and Mr. Sanjeev Kumar Sharma (Technical Member), marks the beginning of the corporate insolvency resolution process (CIRP) for the Ahmedabad-based renewable energy company. IREDA, a government-owned financial institution under the Ministry of New and Renewable Energy, had sanctioned loans totalling ₹863.3 crore to Gensol Engineering between March 2022 and May 2024 for multiple renewable energy and EV projects. However, Gensol defaulted on repayments due on March 31, April 19, and May 12, 2025, triggering loan recall notices and eventually the insolvency application under Section 7 of the Insolvency and Bankruptcy Code. In its defence, Gensol argued that the defaults were not substantiated with adequate evidence and contested the appointment of the proposed Interim Resolution Professional (IRP), citing conflict of interest. The Tribunal acknowledged the conflict and appointed an alternative IRP — Mr. Keshav Khaneja — to take charge of the process. The NCLT declared a moratorium on legal proceedings and asset transfers in line with Section 14 of the IBC and directed Gensol's management to cooperate fully with the IRP. SEBI had earlier barred Gensol's promoters from holding directorial positions over alleged fund misutilisation, adding further weight to the need for resolution. With this order, the CIRP against Gensol Engineering has officially commenced, aiming to resolve its debts and explore a turnaround plan under the supervision of the IRP. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
News18
a day ago
- Business
- News18
Setback For Gensol: NCLT Admits IREDA Insolvency Plea Over Rs 510 Cr Default
Last Updated: The NCLT Ahmedabad admitted IREDA's plea for insolvency against Gensol Engineering Ltd over Rs 510.10 crore loan default. SEBI barred Gensol's promoters for fund misuse. In a setback for Gensol Engineering Limited, the National Company Law Tribunal (NCLT), Ahmedabad Bench has admitted a plea by Indian Renewable Energy Development Agency Ltd (IREDA) to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. IREDA, a public sector NBFC under the Ministry of New and Renewable Energy, alleged that Gensol defaulted on loan repayments worth Rs 510.10 crore across five sanctioned financial facilities, including electric vehicle leasing and solar power projects. The loans were disbursed between March 2022 and May 2024. According to the shared court order copy, the tribunal said that Gensol had failed to maintain financial discipline, citing defaults on 31 March, 19 April, and 12 May 2025. IREDA in the filing said that it filed an application on May 14 under Section 7 of Insolvency and Bankruptcy code, 2016 against Gensol Engineering Limited for a defaulted amount of Rs 510,00,52,672. IREDA admitted supporting evidence including ledger extracts, bank statements, and filings with NeSL (National E-Governance Services Ltd), as well as invoking personal guarantees of the company's promoters. The tribunal also directed IREDA to deposit Rs 20 lakh towards CIRP costs and instructed all concerned authorities, including the Registrar of Companies and IBBI, to be notified of the order. Gensol Engineering shares hit the 5% lower circuit to halt trading at Rs 48.72 apiece today, July 23. Gensol Fund Saga Sebi had barred the Gensol Engineering's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to allegations of misusing public company funds for personal gain. The promoters are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators. The interim order not only restricts them from accessing capital markets but also prevents them from holding key positions in any listed company for the time being. It is the alleged misuse of nearly Rs 262 crore from the Rs 978 crore loaned to Gensol by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The funds were intended for acquiring 6,400 EVs for leasing to BluSmart, but only 4,704 vehicles were purchased. Sebi's findings suggest that a portion of the funds was redirected to personal luxuries, such as high-end real estate, foreign travel, golf equipment, and other personal expenses. Since the unfolding of the Gensol Fund saga, shares of the company plummeted up to 93 per cent. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
a day ago
- Business
- Mint
Foreign investors stocked up on these three mid caps in Q1. Should you?
The April-June quarter brought interesting news for the Indian stock market as foreign institutional investors (FIIs) increased their stakes in several Indian companies. Foreign flows into the Indian market often signal confidence in the country's long-term growth. What's particularly noteworthy is that FIIs invested in diverse sectors including renewable energy, defence, shipbuilding and financial services in Q1. In this piece, we'll dive into three mid cap stocks that saw notable FII buying during the quarter. #1 Premier Energies Ltd Premier Energies is a solar manufacturing powerhouse that's been quietly building its empire since 1995. What makes it stand out is its scale and focus on technology. With a massive 2 GW of capacity for solar cells and 5.1 GW for solar modules, it is equipped to handle high volume. The company's automated production lines achieve an impressive 23.2% cell efficiency. It is also future-ready, planning to introduce advanced TOPCon cell technology. Most of the company's revenue comes from India's booming domestic solar market, which fits perfectly with the government's ambitious renewable energy targets. FIIs' shareholding jumped from about 3% in March to 4.38% in June – a 46% increase in just one quarter. This isn't just a random buying; it shows the company's strong financial performance and expansion plans caught investors' attention. Another important aspect of Premier Energy is its backwards integration strategy. It's setting up a 2-GW solar wafer plant through a joint venture, essentially controlling more of its supply chain. The company's revenue increased 109.76% in FY25 and net profit surged 305%. The Ebidta margin expanded to 28.78% from 15.93% in FY24. This performance was due to India's booming solar demand and the company's growing manufacturing capacity. The company also has a massive order book worth ₹84,456 crore (5.303 MW of capacity), mainly comprising domestic orders, which provides strong revenue visibility. #2 Indian Renewable Energy Development Agency Ltd IREDA is a financial institution focussed on India's clean-energy transition. Established in 1987 as a non-banking financial Institution under the ministry of new and renewable energy, IREDA has spent more than three decades funding renewable energy projects across India. What makes IREDA attractive is its position as the government's primary vehicle for financing India's ambitious renewable energy goals. The company recently achieved a significant milestone in operational autonomy, giving it more freedom to take strategic decisions and expand operations. Foreign investors clearly see IREDA's long-term potential. Their shareholding jumped from 1.75% in March to 2.04% in June – a 38.80% increase – despite weak financials. This suggests FIIs are looking beyond quarterly fluctuations and focusing on IREDA's strategic importance. A key factor that boosted investors' confidence was the recent policy support for IREDA's bonds. The government granted tax-saving status to IREDA bonds under Section 54EC, making them attractive for investors looking to save on capital gains tax. This regulatory backing not only broadens IREDA's investor base but also ensures more consistent and lower-cost capital inflows, strengthening its ability to fund renewable energy projects efficiently. IREDA reported mixed financial results in Q1FY26, with revenue from operations growing 29% year-on-year but net profit declining 36% year-on-year, reflecting operational challenges. IREDA's outstanding loan book grew 26%, while new sanctions jumped 36%. Other key developments, such as ₹2,010-crore fundraise through a qualified institutional placement (QIP), the launch of perpetual bonds worth ₹1,270 crore, and maintaining a healthy margin with a 9.95% yield on loan assets and a 3.60% net interest margin, underscored its role as India's premier renewable-energy financier. #3 Garden Reach Shipbuilders & Engineers Ltd Garden Reach has over six decades of experience in building naval and commercial vessels. Based in Kolkata, It's a government-owned company that has been the backbone of India's maritime defence capabilities since it was nationalised in 1960. It holds the distinction of being the first Indian shipyard to build 100 warships. In 2006 GRSE received Miniratna status, which enhanced its financial and operational autonomy. The company's portfolio spans guided-missile frigates, corvettes, fleet tankers, fast patrol vessels, amphibious warfare vessels for naval applications, and commercial vessels such as research ships, dredgers and tugboats. Beyond shipbuilding, the company also operates engineering and engine divisions, positioning itself as a comprehensive maritime solutions provider in India's expanding defence sectors. Foreign investors seem bullish about GRSE's long-term prospects, with their shareholding increasing 46% from 3.84% in March to 5.33% in June. GRSE's strategic diversification into commercial shipbuilding adds another layer of attraction. The company has secured an order from German clients and signed an MoU for India's first polar research vessel. This diversification reduces dependence on government contracts while positioning GRSE in high-margin, specialised segments with significant export potential. The company delivered strong results in FY25, with revenue from operations increasing 41% year–on-year. Net profit surged 46% while the operating margin remained around 13%. In Q4 FY25, revenue jumped 62% quarter-on-quarter and net profit increased 118%. A significant business development was the ₹430-crore provision write-back from the P-17 Alpha project, reflecting the company's improved cost visibility as the first ship nears delivery. GRSE's order book stands at ₹22,860 crore, providing strong revenue visibility. The company aims to expand capacity from 24 to 28 ships this year, positioning itself for major upcoming defence contracts worth ₹40,000 crore. Conclusion Buying patterns show FIIs are investing in India's structural transformation and not just looking at companies' financials. Despite the mixed quarterly results of the above companies, FII continued to increase their stakes, demonstrating their confidence in the long-term growth of sectors such as renewable energy, defence indigenisation, and financial inclusion. While short-term volatility may continue because of project execution cycles and operational adjustments, the underlying fundamentals of these companies remain robust. For retail investors, FII activity can serve as a valuable signal about India's growth trajectory. However, success will depend on the efficient execution of expansion plans, continuing policy support, and an ability to translate strategic positioning into sustained financial performance. Happy investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
United News of India
2 days ago
- Business
- United News of India
IREDA reaffirms its commitment to India's Clean Energy Mission
Mumbai, July 21 (UNI) Indian Renewable Energy Development Agency Ltd (IREDA), India's leading Non-Banking Financial Company (NBFC) under the Ministry of New & Renewable Energy (MNRE), reaffirms its commitment towards India's clean energy mission with strong financial performance and robust growth strategy, according to a statement issued here today. IREDA reported a 49 percent year-on-year growth in operating profit and a 30 percent rise in total income from operations in first quarter (Q1) of FY 2025–26. The strong performance underscored the strength of its core business. IREDA's outstanding loan book surged to Rs 79,941 crore, a 26 percent increase over the previous year, with significant contributions from solar, wind, and emerging technologies like green hydrogen, smart meters, and EVs. The company maintained its impeccable AAA (Stable) domestic credit ratings and successfully raised Rs ₹5,903 crore during the quarter, including a JPY 26 billion ECB from SBI Tokyo, ensuring access to cost-effective capital. Further, while net worth rose by 36 percent, to Rs ₹12,402 crore reflecting continued investor confidence and leadership in the renewable energy financing space. Commenting on the continued growth metrics, Pradip Kumar Das, Chairman & Managing Director, said: 'Operational excellence and responsible financing remain at the heart of our business strategy. We are committed to creating long-term stakeholder value through strong corporate governance, financial discipline, and robust support to India's renewable energy goals.' In a major policy boost, the Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified IREDA bonds as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961, effective July nine. This enables investors to claim capital gains tax exemption while supporting India's green transition. The move is also expected to reduce IREDA's cost of capital and encourage wider investor participation. Over the past financial year, IREDA has steadily reduced its NPAs over time by strengthening credit appraisal systems and recovery mechanisms and as a part of its forward strategy, the organisation continues to diversify its lending portfolio and align with national and global sustainability goals. IREDA also achieved recognition for governance and financial excellence, including the 'CMA Icon 2025' award to the CMD and a top five national ranking for wealth creation between November 2023-–24 by a leading business daily. India's recent milestone of achieving 50 percent non-fossil fuel-based power capacity, five years ahead of its 2030 target underscores the growing opportunities in the renewable energy sector. IREDA has been instrumental in this progress and continues to reaffirm its leadership in driving the country's clean energy transition towards the 500 GW target. UNI AAA SS
The Hindu
3 days ago
- Business
- The Hindu
IREDA hopeful of Gensol resolution, to raise ₹3,000 crore
Indian Renewable Energy Development Agency (IREDA), the lender to green businesses, said it was hopeful of recovering its exposure to scam hit Gensol Engineering and BlueSmart which have been dragged to the National Company Law Tribunal (NCLT). IREDA chairman and managing director Pradip Kumar Das on Monday said the entities had highly yielding assets and the problems was of mismanagement by promoters. 'We had an exposure of ₹640 crore before the company went down. Since then we have recovered ₹275 crore in the June quarter. Now we have ₹365 crore left for which we have already made provisions for,' he said at a briefing. 'We hope the NCLT finalises the resolution professional in a day or two and the operations resume normally. Then our money can be secured as its assets are standard,' he said. 'The business model for which we had lent is absolutely lucrative. We lent for five years against the car's life of 8-10 years. On some of the loans, we have received three-year repayments and on some, two-year repayments.' Due to Gensol and one more defaulting borrower from Hyderababd, IREDA had seen its non-performing assets rise in the June quarter. Its gross NPAs doubled to 4.23% while net NPAs rose to 2.06% from 1.35%. On lessons learnt from the Genson episode, Mr. Das said, 'We have to tighten our review and monitoring system to avoid recurrence of Gensol-like episodes, particularly whenever a new entrant is growing faster in the new and emerging sector.' Meanwhile, the public sector NBFC, which recently raised ₹2,005 crore through QIP has announced plans to raise another ₹3,000 crore by this year-end. 'We will try to optimise our equity and our borrowing so that we can optimise lending and overall minimise the borrowing cost,' Mr. Das said. The Central Board of Direct Taxes recently notified IREDA bonds as 'long-term specified assets' under Section 54EC of the Income-tax Act. This would enable investors to claim capital gains tax exemption in case they invest in IREDA bonds. This would enable IREDA to further raise around ₹4,000-5,000 crore via bonds, Mr. Das added. He said the firm would see over 30% loan growth this fiscal.
