**Gensol Engineering Ltd Faces Ownership Loss Amid Financial Struggles**
Gensol Engineering Ltd’s promoters are experiencing a significant reduction in ownership as creditors have seized 6.96% of pledged shares due to the company’s inability to provide additional collateral after a 68% decline in stock price since January 1, 2025. Last week, creditors led by Virtue Financial Services Private Ltd and SICPA India Pvt Ltd invoked 4.3% and 1.19% of the pledged shares, respectively. This follows an earlier action by Badjate Stock Broking Pvt. Ltd, which invoked 1.47% of promoter shares, highlighting the financial challenges faced by the Ahmedabad-based company.
### Financial Challenges and Share Pledges
– **Stock Price Decline**: Gensol’s stock has plummeted 82% from its peak of ₹1,377.1 on February 20, 2024.
– **Increased Pledges**: The Jaggi brothers, co-founders of Gensol, pledged an additional 6.23% of shares between January 1 and March 8, 2025, raising the total promoter pledge to approximately 88%.
– **Loss of Control**: Since March 3, 2025, when Care Ratings Ltd downgraded Gensol’s ₹716 crore bank loan to default, the founders have lost 9.37% of their shares in just nine trading days.
### Company Response and Future Plans
Gensol has denied any wrongdoing and reassured investors of its commitment to clearing its current debt of ₹1,146 crore. The company plans to raise funds through a preferential allotment of shares from promoters and by selling some of its electric vehicles leased to Blu-Smart.
### Conclusion
As Gensol navigates these financial difficulties, the future of its ownership structure remains uncertain. Will the company successfully regain stability and control?
**FAQ: What actions have creditors taken against Gensol Engineering Ltd?**
Creditors have invoked a total of 6.96% of pledged shares due to the company’s inability to provide additional collateral, following a significant drop in stock price.
