New Delhi, March 4 -- Gensol Engineering Ltd (GEL) on Tuesday said Care Ratings has downgraded its bank loan of Rs.716 crore to default following delays in "servicing of term loan obligations", sending the company's shares reeling.

Following the disclosure, the company's stock fell 20% to hit the lower circuit, settling at Rs.413.95 on the BSE.

"As per feedback from GEL's lender, there have been delays in debt serving by GEL along with pending overdues and SMA classification of the account," the Care Ratings dated 3 March said.

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A company spokesperson said: "We would like to clarify that this was a one-time disruption, resulting in a minor delay in debt rep...