In a troubling turn of events for Gensol Engineering, the company’s stock has taken a significant hit, plunging 5% on Thursday and reaching the maximum allowable decline for the day. This dip follows serious allegations against the company’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, who have been temporarily banned from the securities markets by SEBI—the Securities and Exchange Board of India—due to claims of misusing loan funds for personal purposes.
Ongoing Crisis and Stock Performance
The recent turmoil has caused Gensol’s shares to plummet to ₹95.80 on the BSE, marking a 52-week low. Similarly, at the NSE, the stock fell by 5%, hitting a low of ₹94.91. To put this into perspective, Gensol’s stock has now declined a staggering 91.49% from its peak of ₹1,125.75, and this marks the 11th consecutive trading day of losses for the company.
- Current Stock Prices:
- BSE: ₹95.80 (down 4.96%)
- NSE: ₹94.91 (down 5%)
- 52-Week High: ₹1,125.75
- Percentage Drop: 91.49%
Regulatory Actions and Corporate Governance Concerns
The market regulator SEBI initiated its investigation in response to a complaint received in June 2024, which alleged share price manipulation and the diversion of funds from Gensol Engineering. This scrutiny has raised serious questions about the company’s corporate governance practices and overall financial integrity.
Additionally, SEBI has put a halt to Gensol’s proposed stock split, intended to be in a 1:10 ratio, pending further developments. The Ministry of Corporate Affairs has also indicated that it will take appropriate measures regarding Gensol Engineering after reviewing SEBI’s directives.
Future Implications for Gensol Engineering
As Gensol Engineering grapples with these challenges, the company, known for its solar consulting services and electric vehicle leasing, faces a critical juncture. Stakeholders are keenly watching how the situation unfolds and what steps the company will take to restore investor confidence.
For anyone monitoring the stock market or interested in corporate governance, Gensol Engineering’s situation serves as a stark reminder of the complexities and responsibilities that come with managing publicly listed companies.
