Gensol Engineering Share Price Falls To All Time Low Following Sebi’s Interim Order Against Promoters

Gensol Engineering News: Gensol Engineering shares extended their losing streak for the sixth straight session on April 16. Gensol Engineering's share price fell over 5 per cent to hit an all-time low of Rs 122.68 apiece on the NSE. The solar energy sector player’s share price fell after the Securities and Exchange Board of India (Sebi) released an order against the company and its promoters.

Gensol Engineering Sebi Order

Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol Engineering have been prohibited from accessing the stock market. Additionally, they have also been barred from holding key managerial positions in the company.

“Noticees 2 (Anmol Singh Jaggi) and 3 (Puneet Singh Jaggi) are restrained from holding the position of a director or a Key Managerial Personnel in Gensol, until further orders. Noticees 1(Gensol Engineering Limited), 2 and 3 are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders,” the Sebi order said.

Additionally, the market regulator has also deferred Gensol’s 10:1 stock split. Sebi mentioned that the promoters can file their reply or object to the order within 21 days of receiving the order.

What Prompted Action Against Gensol Engineering

The action taken by the Sebi followed a long-drawn probe by the market regulator which started after complaints emerged regarding allegations of share price manipulation and default in loan repayments by the company. Key allegations against the promoters of the company include borrowing loans amounting to Rs 978 crore from IREDA and PFC and using the borrowed funds for personal expenses. Other allegations include the diversion of funds from Gensol to private entities.

The market regulator added that the company has mis-utilised and diverged funds of the company in a fraudulent way. Sebi added that the company has also misled the market regulator by submitting forged conduct letters to credit rating agencies to falsely claim timely debt repayments.

“In the above paragraphs, the prima facie findings have shown mis-utilization and diversion of funds of the Company in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds, as has been detailed above,” Sebi said.

Sebi also mentioned in the letter that the diversion of funds by the promoters falls under the category of ‘related party transactions’ which are mandatory to be disclosed to the regulator. However, the promoters have ‘allegedly’ failed to do so.

“....the promoters and their related parties/relatives benefitted from the funds ofGensol, a listed company, through layered transactions, such transactions qualified to be related party transactions in terms of Regulation 2(zc) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations, 2015). Accordingly, such transactions were required to be disclosed…which Gensol has allegedly failed to do,” the order stated.

The Sebi also noted that the shareholding of the promoters had reduced to 35.125 per cent as of March 31, 2025, as they held 1,33,48,359 shares. Sebi highlighted the risk involved in the promoters further off-loading their shares and added that letting the promoters hold key managerial positions is expected to further damage.

“The promoter holding in the Company has already come down substantially and there is a risk of the promoters (Noticees 2 and 3) further off-loading the shares on gullible investors,” Sebi said.

Gensol Engineering Share Price History

In the past six sessions, the price of the stock has fallen nearly 25 per cent. The stock has declined nearly 87 per cent in a year. On a year-to-date basis, the Gensol Engineering share price has fallen nearly 84 per cent. In six months the stock has declined over 85 per cent and in a month the company’s shares have fallen over 50 per cent. In five days the stock has slipped over 16 per cent.

Gensol Engineering shares were locked at the 5 per cent lower circuit limit of Rs 122.68 apiece on the NSE. The stock has been placed in the 'T' group of shares, notably, it has also been placed under Stage 1 of the Enhanced Surveillance Measures (ESM) framework.