Gensol Engineering shares have experienced a significant decline, dropping over 75% from their peak in June 2024. This downturn is attributed to multiple factors:
SEBI’s Interim Order :
On April 15, 2025, SEBI barred Gensol’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding key positions and participating in the securities market. This action followed alleged defaults on loans totaling approximately ₹9.78 billion, primarily used for purchasing electric vehicles for BluSmart, an EV ride-hailing startup owned by the same founders.
Credit Rating Downgrades :
Both CARE Ratings and ICRA downgraded Gensol’s credit ratings to default status, citing delays in debt servicing and concerns over liquidity and corporate governance. ICRA noted that certain documents provided by Gensol regarding its debt servicing track record were apparently falsified.
CFO Resignation :
Ankit Jain, the Chief Financial Officer, resigned effective March 13, 2025, citing personal reasons. His departure added to investor concerns about the company’s financial stability.
Promoter Stake Sale :
The company’s promoters sold approximately 2.3% of their stake, amounting to 900,000 equity shares. While the company stated this move was to unlock liquidity for reinvestment, it raised questions about the promoters’ confidence in the company’s future.
Regulatory Surveillance :
Due to high volatility and abnormal price movements, Gensol’s shares have been placed under the Additional Surveillance Measure (ASM) framework by stock exchanges, indicating increased scrutiny.
These developments have collectively eroded investor confidence, leading to a sharp decline in Gensol Engineering’s share price.
Leave a comment