Gensol Engineering shares in focus today as IREDA files insolvency plea

The Indian Renewable Energy Development Agency (Ireda) has initiated legal action under Section 7 of the Insolvency and Bankruptcy Code against Gensol Engineering due to the company's failure to repay a loan of Rs 510 crore. This was disclosed in a stock exchange announcement on Wednesday.

If the National Company Law Tribunal accept the insolvency petition, it is anticipated that all of Gensol's creditors will need to submit their claims to the resolution professional appointed by the court, and the company's equity value may potentially be lost.

On Wednesday, Gensol Engineering shares rose by 5 percent to reach Rs 60 each.  Market cap of the firm stood at Rs 228.55 crore. 

The company is also under the scrutiny of various regulatory bodies, including a Securities and Exchange Board of India (Sebi) investigation regarding allegations of fund diversion by its promoters from the publicly traded company.

In response to the Sebi directive, Gensol's founders, Anmol Singh Jaggi and his brother Puneet Singh Jaggi, stepped down from their positions on the board. 

In March 2025, CARE Ratings and ICRA downgraded Gensol Engineering’s bank facilities from BB+ (Stable) to ‘CARE D’ due to concerns over falsified debt servicing documents, raising serious corporate governance issues. Acknowledging the downgrade, Gensol announced a debt reduction plan to address investor concerns.

Gensol Engineering is a part of the Gensol Group of companies, which offers engineering, procurement, and construction (EPC) services for the development of solar power plants.