Gensol Engineering Share Price Hits Lower Circuit After IREDA Moves to Debt Tribunal

Market Performance

Gensol Engineering's share price witnessed a sharp decline in early morning trade on Thursday, May 22, 2025, hitting the lower circuit on the NSE.

• Opening Price: ₹68.30
• Previous Close: ₹69.70
• Lower Circuit Limit: ₹68.30

The stock opened directly at its lower price band, signaling intense selling pressure from the start of the session.

Main News: IREDA Initiates Debt Recovery Proceedings

The steep fall in Gensol Engineering's share price followed a significant development from the Indian Renewable Energy Development Agency Limited (IREDA). The government-backed agency announced legal action against Gensol Engineering Limited and Gensol EV Lease Pvt. Limited to significant loan defaults.

On May 21, 2025, IREDA informed the NSE and BSE about filing an application with the Debt Recovery Tribunal (DRT) Delhi after market hours.

Debt Recovery Details:

• Total Default Claimed: ₹729 crore
  • ₹510 crore from Gensol Engineering Limited
  • ₹218.95 crore from Gensol EV Lease Pvt. Limited

The application was filed in accordance with Section 19 of the provisions of the Recovery of Debts and Bankruptcy Act of 1993.

This move marks a continuation of IREDA’s earlier notices dated May 14 and May 16, 2025, signaling a serious step toward recovering dues from the two entities.

Company Details

Gensol Engineering Limited, known for its role in renewable energy and electric vehicle leasing through its subsidiary, is now under financial scrutiny.

The company's financial and stock market performance may face prolonged volatility with legal action in motion and such a large debt under contention.

Summary

• Gensol Engineering's share price opened at the lower circuit limit of ₹68.30 on May 22, 2025.
• The plunge followed IREDA’s legal filing with the DRT to recover ₹510 crore from Gensol Engineering and ₹218.95 crore from its EV leasing subsidiary.
• This development is part of a broader debt recovery process initiated in May.

Investors closely monitor the situation as the stock reacts to this debt-related development.