Shares of Gensol Engineering have experienced a significant downturn, plummeting 5% as investors continue to abandon the stock amidst a severe crisis engulfing the company. This alarming trend follows a recent Securities and Exchange Board of India (SEBI) order that prohibits company executives Anmol Singh Jaggi and Puneet Singh Jaggi from participating in the securities market until further notice. The ruling stems from serious allegations suggesting the brothers misappropriated loan funds for personal gain, raising red flags regarding corporate governance and ethical business practices.
Severe Decline in Stock Value
On Tuesday, Gensol shares fell by 4.97%, closing at ₹106.10, marking a 52-week low on the Bombay Stock Exchange (BSE). The National Stock Exchange (NSE) also recorded a drop, with shares hitting ₹105.17, which is the lowest trading threshold allowed. This decline is staggering, especially when considering that the stock was once valued at a peak of ₹1,125.75—a decrease of 90.57% from its highest point.
- BSE closing price: ₹106.10
- NSE closing price: ₹105.17
- 52-week high: ₹1,125.75
- Percentage decline: 90.57%
Ongoing Investigations and Regulatory Actions
The troubles for Gensol Engineering began with a complaint filed with SEBI in June 2024, alleging manipulation of the company’s share price and inappropriate fund diversion. Following this, SEBI launched an investigation into the matter, leading to the prohibition of the Jaggi brothers from the market. Furthermore, SEBI has also directed Gensol to suspend its planned 1:10 stock split, indicating the severity of the situation.
Corporate Oversight and Future Actions
The Ministry of Corporate Affairs has announced that it will take appropriate actions regarding Gensol Engineering after thoroughly reviewing SEBI’s recent order. This response highlights a growing emphasis on corporate oversight and accountability in the wake of allegations of financial misconduct.
Gensol Engineering is known for its contributions to the solar consulting sector, offering engineering, procurement, and construction (EPC) services, in addition to leasing electric vehicles. However, the current turmoil raises critical questions about its operational integrity and the future of the company in a competitive market.
Investors and stakeholders will be closely monitoring developments as the situation unfolds, with the potential for further regulatory scrutiny that could impact Gensol’s business operations and market standing.
