Mumbai: Gensol Engineering shares are in free-fall. On Friday, the company’s stock dropped another 5 per cent, hitting a new 52-week low. This marks the 12th day in a row that the stock has fallen. Investors are worried because of serious issues the company is facing.
The stock closed at Rs 91.05 on the BSE and Rs 90.16 on the NSE, both hitting the lower circuit limit for the day. This is the lowest the stock has traded in a year. Just 12 days ago, the stock was over 44 per cent higher than today’s level. From its 52-week high of Rs 1,125.75, it has now fallen more than 91 per cent.
The main reason for this big drop is a major investigation. The Enforcement Directorate (ED) raided Gensol’s offices in Delhi, Gurugram, and Ahmedabad under FEMA (Foreign Exchange Management Act) rules. The ED has also detained Puneet Singh Jaggi, who is one of the co-promoters of the company. He was taken from a hotel in Delhi.
Both Puneet Singh Jaggi and his brother Anmol Singh Jaggi are being investigated for financial wrongdoings. According to a report from SEBI (Securities and Exchange Board of India), the brothers were involved in misusing company funds, bad corporate practices, and possibly manipulating the company’s stock price.
Because of this, SEBI has banned the brothers from trading in the stock market until further notice. SEBI also stopped Gensol from going ahead with its planned 1:10 stock split.
Gensol Engineering is a company that works in the solar energy sector. It gives solar consulting and EPC (Engineering, Procurement, and Construction) services. The company also leases electric vehicles.
SEBI started its probe after receiving a complaint in June 2024 about possible misuse of company funds and manipulation of stock prices. Now, both SEBI and the ED are looking deeply into Gensol’s operations.
With this ongoing crisis, investors are worried and continue to sell their shares, causing the price to fall more each day.
