Once a rising star in India’s renewable energy sector, Gensol Engineering Limited is now facing serious allegations of financial misconduct. The company’s share price hit a lower circuit on April 16, 2025, and on a YTD basis, fell more than 80% since January, followed by allegations of fund diversion, falsified documents, and governance lapses.
On April 15, 2025, the Securities and Exchange Board of India (SEBI) issued an interim order to prevent Gensol’s founders, Anmol Jaggi and Puneet Jaggi, from trading in securities and holding managerial positions. Let’s explore this in detail.
What went wrong with Gensol?
The SEBI’s action comes on the back of allegations of fund diversion where Gensol borrowed ₹977.75 crore to buy electric vehicles but misused personal expenses and investments.
In June 2024, the market watchdog, SEBI, received a complaint against Gensol related to share price manipulation and using the company’s funds for personal purposes; hence, it started reviewing the issue.
From FY22 to FY24, Gensol availed ₹977.75 crore worth of term loans from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corp (PFC) for the procurement of electric vehicles (EVs) and carrying out Engineering, Procurement, and Construction (EPC) services.
Out of the ₹977.75 crore loan, ₹663.89 crore was for purchasing 6,400 electric vehicles and subsequently leasing to BluSmart, a related party, while the remaining part was for EPC works.
To finance the purchase of 6,400 EVs, the expected cost was ₹829.86 crore, including a loan of ₹663.89 crore and a 20% equity contribution from Gensol’s promoters, worth ₹₹165.97 crore. But the company procured only 4,704 EVs, amounting to ₹567.73 crore. Based on this, ₹262.13 crore is missing or not properly explained.
Where did the missing ₹262 Cr go?
As per the SEBI’s order, the missing funds were used by related entities to Anmol Jaggi (founder of Gensol) for personal purposes. This includes purchasing an apartment in The Camellias, DLF Gurgoan, worth ₹42.94 crore. A small part of ₹50 lakh was also used to invest in Ashneer Grover’s Third Unicorn Private Limited.
The majority of the funds were transferred to related parties and family members and used for personal expenses, as per SEBI findings.
Credit rating and falsified documents
In the first week of March 2025, credit rating agencies CARE Rating Limited (CARE) and ICRA Limited (ICRA) downgraded Gensol to ‘D’ or ‘Default’ due to delays in repaying its loans. ICRA also claimed that certain documents shared by Gensol are falsified, which raised concerns on corporate governance.
The key reasons for the downgrade also included liquidity, as Gensol previously claimed to have ₹250 crore working capital but failed to meet debt obligations, and the increased pledge of shares by promoters from 79.8% (Sep 2024) to 85.5% (Feb 2025). However, the CEO of Gensol, Jaggi, denied the allegations.
Following this, Gensol planned to offload assets for repayment of its ₹1,146 crore worth of debt. The plan included the sale of 2,997 EVs for ₹315 crore and the sale of a wholly owned subsidiary for ₹350 crore. The company aimed to reduce its debt-to-equity ratio from 1.95 to 0.82 by repaying a major part of its debt.
Business & Offerings of Gensol
Gensol Engineering Limited is among India’s leading solar EPC firms. The company provides solar consulting services, Engineering, Procurement, and Construction (EPC) services, leasing of electric vehicles, fleet management solutions, EV manufacturing, etc.
Gensol primarily leases its electric vehicles (EVs) to BluSmart, a ride-hailing startup. As per reports, BluSmart is looking to close its consumer app and pivot to a fleet management solutions provider as a fleet partner for Uber. This comes on the back of the ongoing debt issues with its key EV supplier, Gensol.
Gensol made its debut on the stock exchange on October 15, 2019, via listing on the BSE SME platform, and later, in July 2023, it got listed on the mainboard of BSE and NSE.
Gensol Engineering share price history
Gensol share price hit a lower circuit today and closed at ₹122.68, 5% down compared to the previous close. The company's share price is down over 84% since January 2025. Its share price fell 20% on March 4, 2025, following the downgrade rating to ‘D’ by credit rating CARE and ICRA, due to delays in repaying its loans. The sell-off continued on March 5 and 6, Gensol's share price again hit back-to-back lower circuits.
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