Admission of Application under Section 7 of Insolvency and Bankruptcy Code, 2016 against M/s Gensol Engineering Limited
Awaiting price reaction for this filing.
IREDA has informed stock exchanges that the National Company Law Tribunal (NCLT), Ahmedabad, has admitted its insolvency application against Gensol Engineering Limited on June 13, 2025. The application, originally filed by IREDA on May 14, 2025 under Section 7 of the Insolvency and Bankruptcy Code, 2016, was admitted for a default amount of Rs. 510,00,52,672 (approximately Rs. 510 crores). Section 7 applications are filed by financial creditors, indicating IREDA's exposure to Gensol as a lender. The admission marks the start of the corporate insolvency resolution process (CIRP) against Gensol Engineering.
For IREDA, this formal admission kick-starts the formal recovery process through the insolvency route, potentially leading to resolution or liquidation recovery. For Gensol Engineering, this is a severe negative event signalling financial distress and the beginning of insolvency proceedings, which typically results in significant equity value erosion.