Retail Investors Rally Around Gensol Engineering Despite Challenges

In the most recent quarter of March 2025, Gensol Engineering attracted a surge of retail investors, aiming to capitalize on what some may consider a bargain despite the stock’s troubling trajectory. Unfortunately, these investors now find themselves in a precarious position as the company faces serious allegations and a significant drop in share value.

Rise in Retail Investor Numbers Amid Turmoil

The number of retail investors in Gensol Engineering soared past 100,000, reaching 104,458 in March 2025, up from 91,015 in December 2024. This increase of 13,443 investors occurred during a time when the company was embroiled in allegations of fraud and governance issues involving its promoters. Retail investors are defined as those holding shares worth up to ₹2 lakh.

• Retail Investor Growth:
  • March 2025: 104,458 investors
  • December 2024: 91,015 investors
  • Increase: 13,443 investors

In addition to the rise in investor numbers, retail shareholders acquired 28,88,363 additional shares during this period, resulting in their total stake increasing from 23.44% to 30.68%. This surge comes at a time when the promoters’ shareholding has nearly halved.

Promoter Holdings Plummet

Promoter ownership in Gensol Engineering took a significant hit, collapsing from 62.65% in December 2024 to just 35.87% by March 2025. Notably, Anmol Singh Jaggi and Puneet Singh Jaggi, the company’s key promoters, saw their stakes dwindle to 12.32% and 10.47%, respectively.

• Promoter Stake Changes:
  • December 2024: 62.65%
  • March 2025: 35.87%
  • Anmol Singh Jaggi: 12.32%
  • Puneet Singh Jaggi: 10.47%

High-Net-Worth Individuals Also Exit

Interestingly, even the high-net-worth individuals (HNIs) who typically hold larger stakes in the company have started to retreat. The number of HNIs in Gensol Engineering dropped from 111 to 48 in just one quarter, although their overall holding increased from 7.10% to 10.15%.

Gensol Engineering Stock in Freefall

The stock’s performance has been dismal, with a continuous decline since late February 2025. On April 29, Gensol Engineering shares plunged another 4.97%, reaching ₹82.20 on the BSE, and hitting a fresh 52-week low of ₹81.36 on the NSE. This marks the 14th consecutive day of declines, with the stock having plummeted nearly 92% from its peak of ₹1,125.75 on June 24, 2024.

• Recent Stock Performance:
  • April 29, 2025: ₹82.20 (BSE)
  • 52-week low: ₹81.36 (NSE)
  • Total drop since peak: 92%

Adding to the turmoil, the Directorate of Enforcement recently conducted raids on Gensol’s offices in Gurgaon and Ahmedabad, leading to the seizure of essential documents and electronic devices. The financial implications of this raid remain uncertain.

Conclusion: What’s Next for Retail Investors?

As Gensol Engineering navigates through these turbulent waters, retail investors are left questioning their next steps. With a landscape filled with uncertainty and a consistent downtrend in stock performance, it’s crucial for investors to stay informed and tread carefully in the volatile market environment.

For those looking to refine their investment strategies, it might be beneficial to learn how to spot potential red flags in their portfolios.