Gensol Engineering shares down 5%, hit another lower circuit level

Shares of solar consulting firm Gensol Engineering on Tuesday, April 22, plunged 5% to hit another lower circuit limit as investors continued to sell the company’s stock amid the ongoing crisis.

Gensol Engineering shares stood at ₹105.17 apiece, down 5%—the lowest trading permissible limit as well as a 52-week low level—on the NSE on Tuesday. The company’s market capitalisation stood at ₹399.67 crore.

On the BSE, shares of Gensol Engineering dropped 4.97% to ₹106.10 apiece, also the lowest trading permissible limit and 52-week low level. The stock is down 90.57% from its 52-week high of ₹1,125.75 on the BSE.

The stock hit lower circuit limits on Wednesday and Thursday last week, as well as on Monday, April 21 as the case against the company promotors develops further.

On April 15, the Securities and Exchange Board of India (SEBI) barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market until further orders. As per reports, SEBI also debarred Anmol Jaggi and Puneet Jaggi from holding any key managerial personnel in Gensol till further orders. Additionally, SEBI directed Gensol Engineering to put its planned stock split into the ratio of 1:10 on hold.

The SEBI ruling came amid accusations of illegally using company loan funds for personal use, raising concerns over corporate governance and financial misconduct.

Gensol Engineering provides solar consulting services, engineering, procurement and construction (EPC) services, and leasing of electric vehicles, among others.

In June 2024, SEBI received a complaint regarding the manipulation of share prices and the diversion of funds from Gensol, which led to the launch of an investigation into the matter.

The Corporate Affairs Ministry on Monday said it will take necessary action in the Gensol Engineering matter after examining SEBI’s order against the company.