Gensol Engineering Limited has informed the Exchange about Corporate Insolvency Resolution Process
GENSOL · price
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Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Ahmedabad, has admitted a petition filed by IREDA (a government NBFC) to initiate Corporate Insolvency Resolution Process (CIRP) against Gensol Engineering Limited under Section 7 of the Insolvency and Bankruptcy Code. The company defaulted on loan repayments totaling Rs. 510.10 crore, out of five sanctioned facilities worth Rs. 863.30 crore taken for solar power and EV leasing projects. A moratorium has been declared under Section 14 of the IBC, and Mr. Keshav Khaneja has been appointed as the Interim Resolution Professional (IRP). The order comes shortly after SEBI issued an interim order on April 15, 2025 restraining the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding directorial positions due to alleged fund misutilization. Gensol had argued that the petition was premature and that the company was financially viable, but the Tribunal ruled the existence of debt and default was established.
This is a severely negative development for shareholders. Trading in Gensol stock will likely face exchange-imposed restrictions, and the company's management and operations will now be under the control of the IRP. Shareholders face significant uncertainty as the CIRP could lead to restructuring, dilution, a change in control, or even liquidation, making this stock highly risky in the near term.