Gensol Engineering denies wrongdoing, says promoter will buy shares from market

Gensol Engineering Chairman and Managing Director Anmol Singh Jaggi, in an exclusive interaction with CNBC-TV18 on Thursday, March 6, said that the company's promoters will look to buy shares of the company from the open market soon.

However, he did not share a timeline as to when they plan on doing so.

"I think we will be surely doing it (buying shares from the market). I cannot confirm the timeline of doing this, whether today, tomorrow, or next week, but it will be done soon," Jaggi said.

Jaggi also spoke of outstanding warrants that have been paid in part. These warrants were issued at ₹870 per share and promoters had committed to put in ₹130 crore through this issue. He said that 25% or close to ₹30 crore has been paid with the remaining ₹100 crore in the balance. From that price, shares of Gensol are down over 60%.

"I think either we will, to regain the trust of our customers, will go ahead with the open market purchase or we will go ahead and infuse the liquidity into the business by subscribing to our warrants. But like I mentioned, I do not have exact timeline on it as we speak, but over the weekend or over the next week, we will be taking concrete steps on this," Jaggi added.

Jaggi also denied any wrongdoing in response to ratings agency ICRA's allegation of falsification of loan repayment documents.

"There has been zero wrongdoing, as far as we are aware, and we will continue to work with high ethical standards," Jaggi said, adding that an independent committee has been formed to verify the allegations. "We are committed, we are strong and we will bounce back," Gensol's Chairman & MD said.

Despite the clarifications from Jaggi, shares of Gensol Engineering continue to remain in a 10% lower circuit. The stock was down in a 10% circuit on Wednesday as well after its circuit limit was revised down from 20% earlier.

Shares of Gensol Engineering are down 70% from their peak of ₹1,124.