Shares of Gensol Engineering, grappling with significant challenges, continued their downward trend for the 16th consecutive day on Friday, plunging an alarming 5% and reaching a fresh lower circuit limit. The stock’s value plummeted to ₹74.20, marking a 52-week low on the Bombay Stock Exchange (BSE). This decline was mirrored on the National Stock Exchange (NSE), where the company’s shares hit ₹73.42, also a 52-week low.

Consistent Decline in Stock Performance

This relentless drop has resulted in a staggering 54.60% decrease in Gensol’s stock price over the past two weeks. From its peak value of ₹1,125.75, the shares have now nosedived by an astonishing 93.40%. The equity markets observed a closure on Thursday in observance of Maharashtra Day, adding to the trading context.

Regulatory Scrutiny Surrounding Gensol Engineering

The turmoil surrounding Gensol is compounded by serious allegations against its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The Securities and Exchange Board of India (Sebi) has initiated regulatory actions against them due to concerns regarding the alleged misappropriation of loan funds intended for electric vehicle purchases. As a consequence, both brothers have been banned from holding any positions in listed companies, impacting their credibility and investor confidence.

Impact on Business Operations

Gensol Engineering specializes in solar consulting, engineering, procurement and construction (EPC) services, as well as electric vehicle leasing. The company found itself under scrutiny following a complaint lodged in June 2024, which accused it of share price manipulation and fund diversion. This prompted Sebi to investigate the matter thoroughly.

• Key Figures:
  • Current Stock Price: ₹74.20 (BSE), ₹73.42 (NSE)
  • Decline Over 16 Days: 54.60%
  • Peak Stock Price: ₹1,125.75
  • Current Drop: 93.40%

In light of these developments, Sebi has also instructed Gensol Engineering to suspend its proposed 1:10 stock split, further complicating the company’s financial landscape. Investors and stakeholders are closely monitoring the situation as it unfolds, anticipating the long-term implications on Gensol’s market standing and operational strategies.