Gensol Engineering Share Price Crashes to Lower Circuit on IREDA Insolvency Action

Market Performance

Gensol Engineering's share price witnessed a sharp decline on Friday, hitting the lower circuit on the Bombay Stock Exchange (BSE).

• Opening Price: ₹49.43
• Previous Close: ₹50.43
• Lower Circuit Limit: ₹49.43
• Correction from High: Over 95% decline

The Gensol Engineering share price remained locked in the lower circuit, reflecting intense selling pressure from investors.

Main News: IREDA Files ₹510 Crore Insolvency Plea

The dramatic fall in Gensol Engineering's share price came after the Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted a corporate insolvency plea filed by IREDA (Indian Renewable Energy Development Agency Ltd).

Key developments:

• Default Amount: ₹510 Crore
• Tribunal Order: Appointment of an Interim Resolution Professional (IRP) to oversee the company's operations
• Allegation: Gensol promoters diluted stake without lenders' consent
• Legal Action: Complaint filed with the Economic Offenses Wing (EOW)

The insolvency filing was first initiated by IREDA on May 14, following a notice issued on April 25.

Since then, several other financial creditors have also submitted insolvency pleas against Gensol Engineering.

Company Details

Gensol Engineering Ltd, once a high-performing stock, has now suffered major financial setbacks.

• Promoter Activity: Stake dilution cited as a breach of contract
• Regulatory Action: Multiple creditors joining IREDA in filing insolvency petitions
• Investor Impact: Share price collapse from ₹1125.75 to ₹49.43 reflects significant wealth erosion

The company's management is now expected to change under the supervision of the IRP, as per the tribunal's order.

Summary

The Gensol Engineering share price continues to remain under pressure after the NCLT admitted IREDA's insolvency plea involving a default of ₹510 Crore. The stock is locked in its lower circuit on the BSE and has lost over 95% . The situation escalated after IREDA accused the company of violating loan terms by diluting promoter stakes without approval, prompting legal proceedings.

With multiple creditors filing claims and the appointment of an interim resolution professional, Gensol Engineering faces heightened uncertainty, which is directly reflected in its share price performance.