On Tuesday, April 22, 2025, shares of Gensol Engineering plummeted to a new 52-week low, continuing a disturbing trend for the small-cap stock. This drop comes on the heels of alarming news that the Directorate of Enforcement (ED) may take action against the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. Reports suggest that the ED is investigating potential links to the Mahadev Book application, raising serious concerns among investors.

ED Investigation and Market Response

Recent articles from The Economic Times revealed that while the ED has not yet formally summoned the Jaggi brothers, they have taken significant steps by freezing over 500,000 Gensol shares. This freeze is part of their investigation into suspected artificial price fluctuations affecting the stock’s performance.

• Gensol Engineering shares have faced relentless selling pressure.
• The BSE has requested further clarification from the company regarding these developments.

In a statement submitted to the BSE, Gensol confirmed that the exchange sought clarification on reports regarding the ED’s investigation into the Jaggi brothers’ involvement with the Mahadev Book application.

Impact of SEBI’s Actions

The situation worsened when the Securities and Exchange Board of India (SEBI) intervened, issuing an interim order that prevents Anmol and Puneet Singh Jaggi from accessing the securities markets. This drastic measure comes amidst allegations that the brothers misappropriated company funds for personal gain, intensifying scrutiny over their corporate governance practices.

• SEBI has also put a halt to Gensol’s proposed 1:10 stock split, aimed at protecting unsuspecting retail investors.

Dramatic Decline in Share Price

As the turmoil unfolded, Gensol Engineering’s stock price has been on a downward spiral. On Tuesday, it reached a 5% lower circuit limit of ₹106.10 on the BSE, marking a fresh 52-week low. Similarly, on the NSE, the stock hit ₹105.17, reflecting a staggering 90.57% decrease from its peak of ₹1,125.75 in the past year. This significant loss has left many investors grappling with substantial declines in their portfolios.

In summary, the ongoing investigations and regulatory actions have created a perfect storm for Gensol Engineering, prompting investors to reassess their positions in a rapidly changing financial landscape. As the situation develops, market watchers will be keen to see how these events unfold and their implications for the company’s future.