Bengaluru, March 10 -- Promoters of Gensol Engineering Ltd who pledged shares heavily are facing the possibility of having to bring in more collateral, at a time when the embattled company's stock has plunged in the middle of a loan default and cash crunch.

Anmol Jaggi and his younger brother Puneet Jaggi pledged an additional 6.23% shares of Gensol between 1 January and 6 March, taking promoter share pledges to about 88%. The solar power plant maker's shares have plunged 71.4% from their peak last year. This means the lenders who extended money at previous highs are left with shares that are worth far less.

"The share pledge has increased primarily on account of additional collateral given to the existing lenders due to a decline in th...