Bengaluru: Gensol Engineering Ltd’s promoters lost more than half of their ownership in the last 31 days of the deal, as rating agencies marked the credit tightening on March 3 as creditors seized 57% of the promised shares, leaving promoters with 26.7% of the promoters.
Gensol founder Anmol Jaggi, his younger brother Puneet and his private company Gensol Ventures own 62.65% of the company at the end of December 2024. Creditors promised that 81.7% of the promoter shares had been guaranteed.
Promoter ownership fell to 35.87%, and as of the end of March 2025, 95.1% of the stock.
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According to April 22, the creditor controlled another 9.19% of the shares, giving the promoter a 26.68% stake. Mint.
Simply put: In the last 31 days of stock trading, the Jaj brothers lost more than 1% of their equity every day.
On March 3, Care Ratings Ltd downgraded its ₹The bank loan of 716 million yuan defaulted on the grounds of “repairing term loan obligations.” ICRA Ltd followed the next day, saying Gensol was “apparently forged” information about its debt services.
Jaggi and Gensol denied any misconduct. However, this triggered a shareholder campaign exit, leaving the stock free to fall: Gensol stock has collapsed by 80% since March 4.
Promoters must raise more funds to pay for loans to Gensol shares targeting creditors, whose creditors are declining every day.
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The Jaggi brothers can’t invest more money from the Indian division of Swiss manufacturer SICPA, the Swiss safety ink maker, to six financial services companies to invoke stocks.
Gensol’s situation deteriorated last week after the Securities and Exchange Commission of India (SEBI) accused the sponsor of fraud and prohibited the Jaggi brothers from holding any executive or board positions in Gensol or trading on securities until further orders.
“The promoter is running a listed company that is listed as if it is a proprietary company. The company’s funds are routed to affiliates and used for unrelated expenses, as if the company’s funds are Piggybank of the promoter.”
Four independent directors resigned, two brothers agreed to resign from the company’s board of directors, and Gensol’s seven-member board shrank to one member: Vibhuti Patel, a 30-year-old executive from Ahmedabad.
A week after Sebi orders, it is not clear who is in charge of Gensol.
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The email sent to Anmol Jaggi seeking clarification was not answered.
“Stock commitments are mainly increased due to the additional collateral given to existing lenders due to the decline in stock prices,” a Gensol spokesman said. Mint last week.
Gensol’s share price ended Tuesday ₹106.10 is the lowest in three years on BSE. The stock is over ₹106.90 April 4, 2022.
