Gensol Engineering Shares Plunge Amid SEBI Scrutiny
In a startling turn of events, Gensol Engineering has witnessed its shares plummet by 5%, opening at Rs 122.68 per share today. This decline comes on the heels of stringent actions taken by the Securities and Exchange Board of India (SEBI) against the company’s promoters, effectively freezing their roles and putting a halt to a much-anticipated stock split. Once celebrated for its advancements in the renewable energy and electric vehicle (EV) sectors, Gensol is now grappling with serious allegations of financial misconduct.
SEBI’s Stern Measures Against Gensol’s Promoters
In a decisive interim order, SEBI has barred Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol Engineering, from accessing the securities market indefinitely. They are also prohibited from holding any positions as directors or key managerial personnel within the company. SEBI’s investigation uncovered that funds intended for business growth, particularly in the EV sector, were misappropriated to benefit entities linked to the promoters.
Company Mismanaged as a ‘Personal Asset’
SEBI’s findings reveal a troubling picture, with the agency stating that the promoters treated Gensol Engineering as a personal enterprise rather than a public company. According to the detailed 29-page report, over Rs 200 crore was funneled through a car dealership and subsequently returned to companies associated with the Jaggi brothers. Allegations suggest that these funds were spent on personal luxuries, including high-end real estate, instead of being directed towards the company’s intended operational goals.
Suspension of Gensol’s Planned Stock Split
The company had previously announced a stock split in a 1:10 ratio, aiming to enhance liquidity and attract more investors. However, SEBI has mandated the suspension of this plan, citing that such a corporate action could potentially mislead investors, especially amidst the current governance concerns surrounding Gensol.
Allegations of Forged Documents and Misleading Financial Records
Further complicating matters, SEBI’s inquiry revealed that Gensol Engineering submitted falsified documents to credit rating agencies to project a misleading image of timely loan repayments. The company had secured loans totaling Rs 975 crore from institutions like IREDA and PFC, with intentions to expand its clean mobility initiatives. However, investigations showed that only a fraction of these funds had been utilized for their intended purposes.
Gensol Engineering’s Stock Performance Deterioration
The stock performance of Gensol Engineering has been dismal. Over the past five trading sessions, the share price has fallen by 17%, while a staggering 46% decline has been recorded in just one month. The situation is even more alarming, with an 85% drop over the last six months, an 86% decrease in the past year, and an 83% fall since the beginning of 2025. This sharp decline has significantly eroded investor wealth.
Currently, Gensol’s market capitalization stands at Rs 498.35 crore. The stock, which once soared to a 52-week high of Rs 1,124.90, has now hit a low of Rs 126.02 within the same period.
In light of these developments, investors are advised to remain vigilant and stay updated on Gensol Engineering’s ongoing situation.
