Gensol Engineering Share Crash: Retail shareholding up nearly 5x in a year, these lenders have exposure

Retail shareholding in Gensol Engineering Ltd. has seen a significant increase over the last 12 months. The stock is down in a 20% lower circuit on Tuesday, March 4, after CARE Ratings downgraded its long and short-term credit facilities due to delays in servicing the term loan obligations.Based on the shareholding pattern available on BSE, the total number of retail shareholders in Gensol Engineering, or those with authorised share capital of up to ₹2 lakh has increased nearly five-fold over the last 12 months.
As many as 91,015 retail shareholders had shares of Gensol Engineering at the end of the December 2024 quarter, compared to the figure of just over 19,000 at the end of the December quarter in 2023.
In percentage terms, the retail shareholding has increased by 10 percentage points to 23.44% from 13.94% last December.Back in December 2023, the name of investor Mukul Agrawal also featured in the list of Gensol shareholders, a name that does not appear in the December 2024 shareholding. Mukul Agrawal had a 1.51% stake in December 2023. No fund houses have exposure to the stock.

An interesting name that features in the December 2024 shareholding of Gensol Engineering is that of Enforcement Directorate Raipur, who has a 1.34% stake.

In the note released by CARE Ratings, five lenders have exposure to the company. Here’s a look at each one of them:

• HDFC Bank: India’s largest lender is part of a bank guarantee worth ₹25 crore and a cash credit worth ₹15 crore.
• IReda: The renewable energy financier has two term loans worth ₹40.42 crore and ₹240.11 crore respectively.
• Power Finance Corporation (PFC): The state-run company has the highest classified exposure at ₹344.17 crore in the form of a term loan.
• Bandhan Bank and ICICI Bank: Both the private lenders have a cash credit worth ₹25 crore and ₹26 crore respectively.

Shares of Gensol Engineering continue to remain locked in a 20% lower circuit at ₹413. The stock is down 63% from its peak of ₹1,124.