Margin Call Hits Gensol Promoters as Scrip Dips

Lenders who gave loans at previous highs left with shares worth far less

- Varun Sood

Promoters of Gensol Engineering Ltd who pledged shares heavily, are facing the possibility of having to bring in more collateral, at a time when the company's stock has plunged in the middle of a loan default and cash crunch.

Anmol Jaggi and his younger brother Puneet Jaggi pledged an additional 6.23% shares of the solar power plant maker from 1 January to 6 March, taking promoter share pledges to about 88%. The shares have plunged 71.4% from their peak last year. This means the lenders who extended money at previous highs are left with shares that are worth far less.

"The share pledge has increased primarily on account of additional collateral given to the existing lenders due to a decline in the share price," said a spokesperson for Gensol.