CMP: ₹60.48 | Down 95% from ₹1,142 highs | IREDA files for Insolvency | SEBI Order Stalled Ops | Promoter Guarantees Invoked
⚠️ At a Glance
- Gensol Engineering Ltd has received a formalinsolvency petitionunderSection 7 of the IBC
- Filed byIREDA(Indian Renewable Energy Development Agency) atNCLT Ahmedabad
- Allegedloan default of ₹510 croreacross five sanctioned facilities 😵
- Promoters’ personal guarantees invoked
- Operations already halted due toSEBI interim order dated 15 April 2025
- Stock hascrashed 95%from its ₹1,142 peak — currently at ₹60.48
- CFO admits: company is undersevere legal and financial stress
“From solar startup to insolvency court — Gensol’s collapse is a masterclass in how not to run a business.”
🧾 Breaking Down the NCLT Case
| 📄 Case Filed By | Indian Renewable Energy Development Agency (IREDA) |
|---|---|
| ⚖️ Filed Under | Section 7 of the Insolvency & Bankruptcy Code, 2016 |
| 🏛️ Court | NCLT Ahmedabad Bench |
| 🧾 Claim Amount | ₹510,00,52,672 (₹510 Cr approx.) |
| 🚨 Promoter Guarantees | Invoked by IREDA on 13 May 2025 |
| 📬 Loan Recall Notice | Sent on 4 May 2025 |
| 🛑 Operations Status | Non-functional since SEBI order dated 15 April 2025 |
This isn’t just litigation. It’sfull-blown insolvency proceedings— the kind that leads to either a resolution plan… or liquidation.
📉 Gensol’s Stock Chart = The Steepest Slide in Smallcap History?
| Date | Price | Fall (%) |
|---|---|---|
| Jan 2024 | ₹1,142 | — |
| May 2025 | ₹60.48 | -94.7% |
“Multibagger dreams turned into multi-dagger losses.”If you invested ₹1 lakh at peak, it’s now worth ~₹5,300. That’s not drawdown — that’s cremation.
🔍 What’s the SEBI Interim Order?
You might ask: Why did operations halt in April?
Because on15 April 2025, SEBI issued aninterim orderhalting Gensol’s activities over:
- Allegations ofstock price manipulation
- Unusualvolume spikes linked to social media promotions
- Failure to comply with disclosures & governance
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