As Gensol Engineering is being investigated by several agencies like Sebi over financial crunch, its promoters have seen their shareholding drop by more than half since December. According to stock exchange data till Tuesday, analysed by The Economic Times, cofounders Anmol Singh Jaggi and Puneet Singh Jaggi, their mother Jasminder Kaur, and promoter group Gensol Ventures lost 57% stake since December 31.
The promoters held 2.8 crore shares, around 62% of Gensol Engineering's stake as of December 2024, of which over 81% were pledged. However, by the end of March 2025, the proportion of shares held by promoters and the promoter group had reduced to 35%. Of this, they used 95.1% in share pledging.
Notably, the surge is pledged share invocations come amid mounting regulatory pressure on Gensol Engineering and its promoters. In March, credit rating agencies ICRA and CARE Ratings downgraded the solar energy solutions provider’s credit facilities --- Rs 2,050 and Rs 716 crore, respectively. ICRA even accused Gensol of fabricating some debt servicing documents, while CARE highlighted delays in loan repayments.
Gensol shares have been stuck in a 5% lower circuit since market opened on Wednesday, even as the benchmark Sensex edged up by 0,21%. The stock has plummeted 80.5% since March 3, when the credit downgrades first surfaced. Year to date, it has tumbled 87%, and over the past 12 months, it is down nearly 90%.
Gensol Under Probe
The company is facing probes from the Securities and Exchange Board of India (Sebi), the Ministry of Corporate Affairs, and the Enforcement Directorate (ED) over the alleged likelihood of inconsistencies at Gensol Engineering and the electric mobility start-up BluSmart.
The ED is currently examining financial irregularities in the solar company’s operations and may soon request additional information from key stakeholders, including regulatory bodies, the report said. This update came after the ED confiscated a stake in Gensol Engineering.
On the other hand, the ministry will scrutinise the company’s regulatory filings, financial accounts, and compliance records. While no fixed timeline has been set for the investigation, officials have stated that any punitive action will hinge on the probe's findings.
And the Sebi found "no manufacturing activity" at Gensol Engineering's electric vehicle (EV) plant in Pune, with only 2-3 labourers present during a site visit by a National Stock Exchange (NSE) official.
