Stock Market Today: Gensol Engineering share price slipped and hit lower circuit on Friday on news flow pertaining to NCLT admitting IREDA’s plea for insolvency in ₹510 crore default. Check details
IREDA’s action against Gensol Engineering
On the basis of a plea submitted by the state-run Indian Renewable Energy Development Agency Ltd or IREDA, which mentioned credit defaults totaling ₹510 crore, the Ahmedabad bench of the National Company Law Tribunal as per news reports has admitted IREDA’s plea for corporate insolvency proceeding against Gensol Engineering Ltd.
The news reports also suggest that the tribunal has also directed for the appointment of interim resolution professional (IRP) to take over the management and operations of Gensol Engineering.
According to IREDA, Gensol’s promoters had diluted their stakes without the lenders’ consent, which was a breach of contract. As a result, the company filed a complaint with the economic offences wing or EoW and sought legal action.
IREDA initially had issued notice to Gensol on April 25 and revealed its insolvency filing on May 14. Since then, a number of additional financial creditors have also filed for the company’s insolvency.
Gensol Engineering Share price hits lower circuit
The Gensol Engineering share price opened at ₹49.43 on th BSE on Fiday. At the time of opening the Gensol Engineering share price was lowr than the previous days closing price of ₹50.43.
The Gensol Engineering share price thereafter continued to trade at the similar levels the same happened to be the lower price band or circuit limit for the Gensol Engineering share price. The Gensol Engineering share price thereby was locked in the lower circuit on Friday.
Gensol Engineering share price that had seen highs of ₹1125.75 in June last year however has seen more than 95% correction and substantial erosion in investors wealth.
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