Gensol Engineering Independent director’s resignation citing debt reasons, adds to pressure on share prices

Stock Market Today: Gensol Engineering share price, which has been hitting the lower circuits regularly, remained under pressure on Thursday, April 17, amidst news flow regarding Sebi action against promoters and directors Anmol Singh Jaggi and Puneet Singh Jaggi. 

Gensol Engineering is facing a fresh setback as independent director Arun Menon resigned from the company, citing high debt levels and concerns over the company's financial sustainability. The news also impacted the share price, intensifying investor anxieties.

Gensol Engineering Independent Director Resigns

Gensol Engineering announced on Wednesday, post-market hours, said Arun Menon has tendered his resignation as the Independent Director of the company, with immediate effect from April 15, 2025. Consequently, he shall also cease to be a member of the various committees of the company.

Arun Menon, in his letter, has cited a higher debt position as the reason for the resignation.

Arun Menon, in his letter, said that there was growing concern about the leveraging of Gensol Engineering's balance sheet to fund the capex of other businesses, and the sustainability of servicing such high debt costs by Gensol Engineering.

Menon added that since he felt that he was adding limited value to the company, he had expressed his desire to resign last year, but was told to hold on till the IPO of Matrix is successfully concluded.

Menon added that his present employment, where the parent is a PE firm, also restricts him from taking up an Independent Directors' role in companies.

Referring to the aforesaid reasons, Menon said that he would like to tender his resignation from his role as Independent Director in Gensol Engineering with immediate effect.

Gensol Engineering share price movement

Gensol Engineering's share price opened at ₹117.50 on Thursday, 5% lower than the previous day's closing price of ₹123.65 on the BSE. On the National Stock Exchange (NSE), the share price of Gensol Engineering was trading at ₹116.54, also down by 5% over the previous day's closing price of ₹122.68.

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