Gensol Engineering’s Stock Takes a Hit Amid Regulatory Scrutiny
On Wednesday, Gensol Engineering Ltd. saw its share price plummet to an unprecedented low, dropping by the maximum 5% allowed under market regulations. This decline was triggered by a significant ruling from the Securities and Exchange Board of India (SEBI), which has put the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, under investigation for serious allegations of fund misallocation and falsification of records.
Impact of SEBI’s Decision on Gensol Engineering
As a result of SEBI’s findings, the Jaggi brothers have been barred from holding any pivotal managerial roles within Gensol, effectively sidelining them from the company’s leadership. This move has further compounded the negative sentiment among investors, especially as SEBI also announced a halt to Gensol’s planned stock split.
- Key concerns include:
- Alleged diversion of ₹975 crore raised for buying electric vehicles.
- Only 4,704 EVs purchased for ₹567.73 crore, leaving over ₹200 crore unaccounted for.
Forensic Audit Ordered for Transparency
In light of these alarming discrepancies, SEBI has mandated the appointment of a forensic auditor. This auditor will conduct a comprehensive review of Gensol’s financial records and those of associated entities, aiming to root out any further irregularities and promote transparency in their financial operations.
Current Stock Performance of Gensol Engineering
The company’s stock fell to ₹122.68 per share by 09:25 a.m., maintaining this level as trading progressed, despite a generally stable NSE Nifty 50. Over the past year, Gensol’s stock had previously surged by 86.67%, but current trading volume is only 0.3 times the average seen over the last 30 days. Additionally, the stock’s relative strength index stands at a concerning 10, indicating significant bearish momentum.
Stay Updated on Market Trends
For those interested in stock movements, keep an eye on other companies like IndusInd Bank, RIL, and ONGC, which are also making headlines in today’s market.
By staying informed about Gensol Engineering and the unfolding situation, investors can make more prudent decisions based on the evolving landscape.
