During Thursday’s trading session, shares of a company involved in the renewable energy sector hit a 5 percent upper circuit on the stock exchanges. Despite this temporary surge, the stock has been in a prolonged downtrend, falling steeply from Rs. 1,125 to nearly Rs. 60 per share.
With IREDA now filing for bankruptcy proceedings against the company, investors are left wondering—should you hold on to this green energy stock or consider exiting your position?
With a market capitalisation of Rs. 240 crores, the shares of Gensol Engineering Limited, engaged in the business of solar consulting, EPC, and leasing of electric vehicles (EVs), hit a 5 percent upper circuit at Rs. 63.14 on BSE, as against its previous closing price of Rs. 60.14. The stock has delivered negative returns of around 93 percent in one year, and has fallen by more than 51 percent in the last one month.
What’s going on
According to the latest regulatory filings submitted to the stock exchanges, Indian Renewable Energy Development Agency Limited (IREDA) has filed an application on 14th May 2025, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gensol Engineering Limited. The filing involves a loan default of nearly Rs. 510 crore.
This move follows serious allegations against the company’s promoters. Anmol Singh Jaggi and Puneet Singh Jaggi were previously found by the SEBI to have submitted fake documents to IREDA and Power Finance Corporation (PFC) in an attempt to hide their loan defaults.
SEBI initiated an investigation into Gensol’s operations after receiving a whistleblower complaint in June 2024. The complaint alleged possible stock price manipulation and diversion of funds. As SEBI delved deeper, it uncovered irregularities in Gensol’s financial records and loan documentation.
Upon discovering that key documents were forged, SEBI requested comprehensive loan details from both IREDA and PFC. The lenders subsequently provided loan sanction letters and account statements, which revealed multiple instances of loan repayment defaults by the company.
Gensol Engineering has been in the news for a while now. On 12th May 2025, Anmol Singh Jaggi (Managing Director) and his brother Puneet Singh Jaggi (Whole-time Director) resigned from their respective positions. As a result, both individuals will also cease to be members of the various committees of the Company. Further, it is also mentioned that both of them have resigned due to the direction given under the SEBI Interim Order dated 15th April 2025.
In early March 2025, CARE Ratings downgraded Gensol Engineering’s long-term and short-term bank facilities to ‘CARE D’— a credit rating given to issuers who are in default or expected to be in default. This was due to ongoing delays in servicing term loan obligations. The company’s liquidity position was described as “poor,” with continued stress in debt servicing.
Gensol Engineering reported a significant growth in its revenue from operations, showing a year-on-year rise of around 57 percent from Rs. 220 crores in Q3 FY24 to Rs. 345 crores in Q3 FY25. Similarly, its net profit increased during the same period from Rs. 12 crores to Rs. 18 crores, representing a growth of around 50 percent YoY.
Written by Shivani Singh
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