Gensol saga: Independent director Arun Menon resigns, reveals Anmol Jaggi had another IPO plan

Gensol Engineering Limited (GEL) independent director Arun Menon has resigned post Securities and Exchange Board of India (SEBI) order against the company. In his resignation email addressed to Anmol Singh Jaggi, Menon wrote that he was reaching out to the promoter since July/August 2024 to seek clarity on the debt position of the company. He mentioned how he had also offered to help to reduce the interest cost through a debt restructure route. But, it never progressed.

As per the resignation mail, Menon also spoke to company secretary Rajesh Parmar on a couple of occasions and asked him for a meeting with the CFO, which also never materialised. As per Menon, there was growing concern on the leveraging of GEL balance sheet to fund the capex of other business; and the sustainability of servicing such high debt costs by GEL.

Menon indicated he was willing to resign earlier. "Since I felt I was adding limited value to the company, I had expressed last year to Mr. Parmar that I would like to put in my resignation , but was told to hold on till the IPO of Matrix is successfully concluded," he said.

The resignation email clearly indicates that promoter Anmol Singh Jaggi had an IPO plan for one of the group company, Matrix. As per UnlistedZone - the platform to track price of unlisted companies - the share price of Matrix was around Rs. 1,075 /share in July last year. But the Gensol Engineering episode has also impacted the price of Matrix. The current price is around Rs 425/share, the market cap of the company is around Rs 1,124 crore, as per the UnlistedZone platform.