Was clear in March. Actually, much before that but anyway.
Now IREDA loses huge chunk of loan assets…PFC loses smaller chunk.
IREDA has not yet provided for this, they will have to in next quarter,
Is NPA season back?
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Gensol promoter bought luxury DLF Camellias apartment in Gurgaon with 'diverted funds
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1744719603252_1.pdf (1.2 MB)
All ValuePickr friend should read SEBI’s order on Gensol as attached. It explains how the loans sanctioned by IREDA and PFC were diverted to the promoter’s account. Shockingly, the company even forged letters from these lenders—manufacturing letter that IREDA and PFC later confirmed they never issued.
For most companies, especially from a retail investor’s perspective, one of the most important red flags should be significant promoter selling (typically 3–5%). Even if the company isn’t involved in fraud, such selling often points to overvaluation.
Take Gensol as an example—the promoter stake dropped by around 7% between March 2022 and March 2023. This kind of significant offloading should be a primary reason to exit or not to enter in stock, despite of exceptional numbers of revenue etc. The only exception to this rule is when the selling is done by a Private Equity (PE) firm—as seen in cases like Home First Finance. Over valued example is Easymytrip, stock price is halved when promoter first sold in March 2023. Always check change of promoter holdings.
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We all expected fraud to some extent in this company.
I mean writing was there on the wall.
Icra/care downgrading their rating to Default.
They alleging fraud document was provided by company regarding loan repayment.
Cfo resignation comes to light the next day.
But fraud to this extent:
They were treating public money as their ancestral belonging.
I would be really amused, if somehow promoters escape the jail sentence even from this.
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This was posted by me in oct 2023. From the outset this was a fraud including Blue smart which was so a asset heavy startup pretending to be a platform with E vehicles as a bonus .
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Ms dhoni, deepika padukone and very big names like renew CEO are invested in blusmart and gensol in earlier funding rounds that was also one of the reason I got very convinced with this company and made it 40% of my portfolio
But these guys have put some much reputation and trust for some pennies like 100-200cr and luxury items
Gensol would have become a 20kcr mcap company easily had they stick to just the solar EPC and renewable energy biz as the boom is just starting
But they screwed it for pennies interms of what they would have got later
Hope they get in jail and never come back for the sort of wealth destruction and savings retail share holders lost due to this frauds
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I haven’t looked into BluSmart or how annoucement of rebranding to Uber Green might play out, but I really hope you’re able to recover your losses in the long run. Accepting mistakes is the first step, and I genuinely respect your courage for facing it head-on.
From my own short experience, there are always new opportunities—good trains will keep arriving at the station. I hope the next one takes you to a better place, with better rewards.
I’ve been thinking about portfolio concentration too. I usually run with 30 stocks, highest 8% weight, but sometimes I wonder how much to bet on a single name. Concentration can be powerful, but also risky. Still figuring it out.
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(post deleted by author)
At what price did you take an exit, or are you still holding it?
Though i had no interest in this company doing good or bad, however had raised concerns back in March 2024
One line of unsolicited advice from a fellow investor - whatever company or management you invest in - if you see anything in social media which questions their lack of integrity then do not even touch that company with a barge pole - no matter how much fan following is there for that particular company. For gensol - there was enough warning and red flags floating around in twitter. Yes - those allegations may not have turned out to be true… but it would be better to stay away and miss a good investment rather then risk a large part of portfolio. Also - we have all done our mistakes and learnt so dont feel too bad. Hope this helps.