Gensol Engineering Stock Plummets: 12 Consecutive Days of Decline!

Gensol Engineering Faces Severe Stock Decline Amid Investigations

In a troubling turn of events, Gensol Engineering has seen its stock plummet dramatically, dropping 5% on Friday. This decline marks a significant new low for the company, which is grappling with a serious crisis. Investors are increasingly concerned as the stock reached a 52-week low of ₹91.05 on the Bombay Stock Exchange (BSE) and ₹90.16 on the National Stock Exchange (NSE), signaling ongoing turmoil.

Prolonged Decline in Gensol’s Stock Value

The downturn has persisted for 12 consecutive trading days, with a staggering 44% loss during this period.
From a peak of ₹1,125.75, the shares have plummeted 91.91% over the past year.

The recent struggles for Gensol Engineering coincide with investigations by the Enforcement Directorate (ED), which conducted raids at the company’s offices located in Delhi, Gurugram, and Ahmedabad. These actions follow the detention of Puneet Singh Jaggi, one of the company’s co-founders, at a hotel in Delhi.

Investigations and Regulatory Actions

The Jaggi brothers, Anmol Singh Jaggi and Puneet Singh Jaggi, are under scrutiny for alleged financial misconduct. The Securities and Exchange Board of India (SEBI) recently issued an interim order preventing them from participating in the securities market until further notice. This action was a response to a complaint received in June 2024, which accused the company of share price manipulation and improper fund diversion.

SEBI has also mandated that Gensol Engineering pause its planned 1:10 stock split indefinitely.
The ongoing investigations primarily involve the Foreign Exchange Management Act (FEMA) provisions, further complicating the company’s financial situation.

Future of Gensol Engineering

With the company’s reputation on the line and its stock value diminishing, the future of Gensol Engineering is uncertain. The firm, known for its expertise in solar consulting, engineering, procurement, and construction (EPC) services, alongside electric vehicle leasing, must navigate these turbulent waters to regain investor confidence.

For those following Gensol’s trajectory, the next steps taken by both the company and regulatory bodies will be crucial in determining its ability to recover from this crisis.