Gensol Engineering Cuts Pledged Shares By 1% To Strengthen Financial Stability

Gensol Engineering Limited has announced a strategic share sale by its promoter, aimed at reducing pledged shares and strengthening financial stability. The sale involved 2,15,000 shares by Anmol Singh Jaggi, representing less than 1% of the total promoter shareholding. This step is intended to lower the level of pledged shares and move the company closer to becoming pledge-free. The shares have been sold to reputed long-term investors.

The promoters of Gensol collectively own 2.38 crore shares, accounting for 62.5% of the company’s total shareholding, demonstrating their long-term commitment. As of December 31, 2024, the promoter pledge stood at 81.7%. These pledged shares were primarily used as collateral for long-term loans from IREDA and PFC, supporting the company’s EV leasing business. Additionally, some shares were pledged under Loan Against Shares (LAS) agreements.

Following this transaction, 0.26 crore pledged shares will be released due to a sale agreement with Refex Mobility for electric vehicles. The company is also working on similar transactions to further reduce the 1.01 crore pledged shares associated with its EV business. The proceeds from the latest share sale will be used exclusively for releasing pledged shares and repaying loans.

Regarding the Loan Against Shares, promoters had pledged 0.89 crore shares. The funds from the recent sale will help in partially repaying LAS lenders, further reducing the number of pledged shares and improving the company’s financial position.

Anmol Singh Jaggi, Chairman and Managing Director of Gensol Engineering Limited, emphasized that this move reflects the company’s commitment to financial stability. He stated that all proceeds from the sale are directed toward reducing pledged shares, reinforcing confidence in the company’s future growth and value creation for stakeholders.