Gensol Engineering shares surge 5% as IREDA moves NCLT; check all latest developments

Shares of trouble-hit Gensol Engineering will be in focus on Thursday, May 15, as the Indian Renewable Energy Development Agency (IREDA) filed a bankruptcy application against the firm before the National Company Law Tribunal.

The stock was trading 4.99% higher on the National Stock Exchange at ₹62.44 per share on Thursday.

According to a regulatory filing, Ireda has filed an application on May 14, 2025, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gensol Engineering Limited, a listed company bearing an amount of default of ₹510,00,52,672 (about ₹510 crore).

As per news reports, Gensol had borrowed ₹977.75 crore from IREDA and Power Finance Corporation, out of which ₹663.89 crore was for purchasing electric vehicles for BluSmart.

1. This week, on May 12, the Jaggi brothers resigned from the company following market regulator Sebi's interim order, according to an exchange filing. Anmol Singh Jaggi held the post of Managing Director while Puneet Singh Jaggi was a Whole-time Director. Read more

2. On Wednesday, Gensol Engineering said the Securities Appellate Tribunal (SAT) disposed of its appeal but allowed the company to file its response on Sebi's interim order to bar the firm and its promoters from the securities market.

3. The company said the appeal it filed before the SAT has been disposed of, granting it the opportunity to file its response to Sebi's interim order within two weeks.

4. Gensol further informed that the market's regulator has been given directions to hear the company within two weeks thereafter and pass an appropriate order within four weeks.

5. Last month, in an interim order, Sebi barred Gensol Engineering and promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities markets till further orders in a fund diversion and governance lapses case.

6. In its order on April 15, 2025, the Sebi also debarred the Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders.

7. Gensol is currently seeking legal assistance from its legal advisors and counsel with respect to preparing the response to the Sebi interim order.

8. The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.

9. In the 29-page order, Sebi had said, "The prima facie findings have shown misutilisation and diversion of funds of the company (GEL) in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds."

10. After hitting lower circuits since the trouble began, shares of Gensol Engineering on Wednesday surged 5% to close at ₹59.47 apiece. Year-to-date, the stock has nosedived 92.3%.