Gensol crashes 90% as SEBI cracks down on promoter fraud

Shares of Gensol Engineering dropped 5 per cent on Thursday to hit the lower circuit limit after Sebi barred the firm and its promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from securities markets till further orders in a fund diversion and governance lapses case.

The stock tanked 4.97 per cent to Rs 117.50 -- its lower circuit limit as well as record low -- on the BSE.

At the NSE, it slumped 5 per cent to Rs 116.54 -- the lowest trading permissible limit for the day as well as an all-time low.

Shares of Gensol Engineering had tumbled 5 per cent to hit the lower circuit limit on Wednesday as well.

From its 52-week high of Rs 1,125.75, the stock is now down 89.56 per cent.

The regulator has also debarred Anmol and Puneet Singh Jaggi from holding the position of a director or key managerial personnel in Gensol until further orders.

Further, the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.

The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.

In a 29-page interim order, Sebi said on Tuesday, "The prima facie findings have shown mis-utilisation and diversion of funds of the company (GEL) 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".

"The company has attempted to mislead Sebi, the CRAs (credit rating agencies), the lenders and the investors by submitting forged conduct letters purportedly issued by its lenders," the regulator said.

Gensol Engineering is engaged in providing solar consulting services, Engineering, Procurement and Construction (EPC) services, leasing of electric vehicles, etc.

Shares of the firm have been falling for the seventh straight session on Thursday.

Gensol Engineering on Wednesday said the company will fully cooperate with the forensic audit to be conducted at the behest of Sebi.