Shares of Gensol Engineering were locked in the 5% upper circuit for a third straight session on May 15 after the Indian Renewable Energy Development Agency (IREDA) filed an insolvency plea against the firm over a loan default of around Rs 510 crore.
The insolvency proceedings, initiated under Section 7 of the Insolvency and Bankruptcy Code, sparked investor speculation about a potential change in ownership that could lead to the company's revival.
Earlier in the week, Gensol's Managing Director, Anmol Singh Jaggi, and Whole-time Director, Puneet Singh Jaggi, resigned from their positions following an interim order by the Securities and Exchange Board of India (SEBI). The order alleged that the Jaggi brothers diverted funds intended for purchasing electric vehicles for their affiliate, BluSmart, for personal use, including the acquisition of a luxury apartment in Gurugram and high-end golf equipment.
Gensol had secured term loans totaling Rs 978 crore from IREDA and the Power Finance Corporation (PFC) between 2021 and 2024, with Rs 664 crore earmarked for the procurement of 6,400 electric vehicles to be leased to BluSmart. However, as of February, the company had procured only 4,704 EVs for Rs 568 crore, leaving a differential amount of Rs 262.13 crore unaccounted for, according to SEBI.
Following the SEBI order, the Jaggi brothers were barred from holding any directorship positions and from accessing the securities market. Subsequently, BluSmart suspended its operations, citing the need to temporarily close bookings on its app.
Caught in the midst of the allegations against its promoters, shares of Gensol Engineering came under the heat of intense selling, hitting one lower circuit after another in 29 out of the last 36 sessions. To that effect, the stock has lost around 93% of its value in 2025 thus far.
