Gensol Engineering Stock Hits 16th Consecutive Lower Circuit Amid SEBI Crackdown On Promoters
In what has become one of the most dramatic stock market plunges of the year, shares of Gensol Engineering continued their nosedive for the 16th straight session on Thursday, hitting the 5% lower circuit once again.
The steep fall follows regulatory action by the Securities and Exchange Board of India (SEBI), which has barred the company’s promoters from participating in the securities market amid grave allegations of fund diversion and financial misconduct.
Once hailed as a prominent company in the clean energy and EV infrastructure space, Gensol Engineering has found itself at the heart of a controversy.
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What began as a promising stock with over 200% gains since listing has now seen nearly 90% of its value wiped out, with over 70% lost in just the past two weeks, according to Bloomberg data.
On Thursday, the stock plunged again, falling to an intraday low of ₹116.5, far from its euphoric peak of ₹1,376 touched in early February 2024.
The stock has now tumbled 84% year-to-date, even as the Nifty 50 index remained relatively stable, falling just 1% over the same period.
The sharp correction comes in the wake of a 29-page interim order issued by SEBI, which barred Anmol Singh Jaggi and Puneet Singh Jaggi—founders and directors of Gensol—from accessing the securities market.
The order follows a detailed investigation into alleged financial irregularities and diversion of company funds for personal luxury purchases and real estate investments, using public company resources as what SEBI described as a “private purse.”
As part of the regulatory action, SEBI has also instructed Gensol Engineering to suspend a previously announced stock split, further compounding concerns among retail investors.
Adding to the turmoil, Arun Menon, who served as an independent director, has tendered his resignation with immediate effect, deepening the leadership crisis.
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Market observers say his departure is a sign of growing discomfort within the board amid the intensifying probe and public scrutiny.
The probe was initiated following multiple complaints and back-to-back credit downgrades of Gensol’s associate entity, BluSmart Mobility, by CARE Ratings and ICRA, citing delays in debt servicing.
SEBI’s findings allege a complex web of fund routing, with investor money being funnelled into unrelated and potentially fraudulent transactions.
For investors, many of whom had ridden Gensol’s meteoric rise over the past year, the current crash feels like a brutal wake-up call.
