Gensol's independent director resigns, says company needs guidance in 'fast-growth environment'

Gensol Engineering's independent director Rajesh Jain has resigned amid liquidity concerns at the renewable energy company.

In his resignation letter dated March 13, filed on the NSE by Gensol Engineering, Jain has remarked on the current focus of the company, calling for the need for a mentor or an advisor to provide necessary guidance as the company scales.

“There is much to cater to, in the company. Whilst promoters are well focused on business growth, there may be a need for a mentor/advisor to provide necessary guidance in such a fast growth environment,” he noted.

The resignation comes weeks after the company’s Chief Financial Officer, Ankit Jain, left the company citing personal reasons. The company has appointed Jabirmahendi Aga as its new CFO.

In the release announcing the new CFO's appointment, Anmol Singh Jaggi, Chairman and Managing Director of Gensol Engineering, said, “We are going through a tough time, and Jabir is the man best suited to lead us through it."

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Gensol Engineering's Q4 net profit hits Rs 20 Cr amid BluSmart partnership

Currently, Gensol has a debt of Rs 1,146 crore against a reserve of Rs 589 crore. To fill this gap, the company’s board approved a Rs 600-crore fund-raising initiative on March 13. This step, along with the sale of vehicles and the sale of a subsidiary, is expected to strengthen the firm’s financial position.

Anmol Singh Jaggi and Puneet Singh Jaggi, along with Punit Goyal, are the founders of EV-ride hailing app BluSmart, which leased vehicles from Gensol.

On January 16, Chennai-based Refex Industries informed the stock exchanges that its subsidiary, Refex Green Mobility, is taking over 2,997 electric four-wheelers from Gensol.

Under this agreement, Refex will lease these vehicles to BluSmart and also assume Gensol’s existing debt amounting to nearly Rs 315 crore.