Creditors Invoke Promoters' Shares as Gensol Tanks 68%

Three creditors wrested 6.96% of the pledged shares as founders failed to provide collateral

- Varun Sood

Gensol Engineering Ltd's promoters continue to lose ownership as three creditors wrested 6.96% of the pledged shares after the founders could not provide more collateral for the loans after the company's stock price tanked 68% since January.

Last week, creditors led by Virtue Financial Services Pvt. Ltd and SICPA India Pvt. Ltd invoked 4.3% and 1.19% of the pledged shares, respectively, according to exchange data dated 17 March. Earlier this month, Badjate Stock Broking Pvt. Ltd invoked 1.47% of promoter shares, implying that the three creditors have taken ownership of 6.96% of Gensol shares since action by two rating agencies first brought to the fore the problems faced by the Ahmedabad-based company.

Since the start of the month, Anmol Jaggi and his younger brother Puneet Jaggi have been fighting to retain control of the solar engineering, procurement and construction, and electric vehicle leasing company they co-founded in 2012.

The two brothers managed to get 0.4% of the shares released from Shine Star Build Cap Pvt. Ltd, a Delhi-based non-deposit taking non-banking financial company.