Shares of the crisis-hit Gensol Engineering took another hit on Wednesday, dropping by 5% and hitting a lower circuit limit. The stock plummeted by 4.99% to ₹78.10, marking its lowest trading limit for the day and also reaching a 52-week low on the BSE. Over at the NSE, the stock also fell by 5%, hitting the lower circuit and touching a 52-week low of ₹77.29. This marks the 15th consecutive day of decline for the company, with a total loss of over 52% during this period. From its 52-week high of ₹1,125.75, the shares have now fallen by a staggering 93%.
The promoters of Gensol Engineering, Anmol Singh Jaggi and Puneet Singh Jaggi, who also own BluSmart, are currently under regulatory scrutiny by the Securities and Exchange Board of India (SEBI). Allegations of diverting loan money intended for electric vehicle purchases have led to SEBI imposing a ban on the duo from holding positions in listed companies. Gensol Engineering, which provides solar consulting services, engineering, procurement, and construction (EPC) services, as well as leasing electric vehicles, has been directed by SEBI to halt its planned stock split in a ratio of 1:10.
The troubles for Gensol Engineering began in June 2024 when SEBI received a complaint regarding share price manipulation and fund diversion. Since then, the regulatory body has been investigating the matter closely. The company’s shares continued to slide on Wednesday, with no signs of immediate recovery in sight.
It’s not really clear why this matters, but the stock market can be a wild ride sometimes. The Jaggi brothers seem to be in hot water with SEBI, and Gensol Engineering is definitely feeling the heat. With the stock hitting new lows and facing regulatory action, it’s a tough time for the company and its promoters.
But hey, that’s just the way the cookie crumbles in the world of finance. Maybe it’s just me, but I feel like this whole situation could have been avoided with better financial practices. In any case, Gensol Engineering has a long road ahead to regain investor confidence and bounce back from this crisis.
So, what’s next for Gensol Engineering? Only time will tell. But one thing’s for sure, the company will need to address the issues at hand and work towards rebuilding trust with shareholders. It’s a tough spot to be in, but with the right steps and transparency, they may be able to turn things around.