Posted on April 25, 2025, by Niftynews
Gensol Engineering shares have been on a relentless downward spiral. As of April 25, 2025, the stock has crashed 92% from its 52-week high, hitting yet another 5% lower circuit—its 12th consecutive day of decline. The ongoing financial and legal turmoil surrounding the company has severely shaken investor confidence.
From being a market favorite in the clean energy and EV leasing space to now battling regulatory heat, here’s a breakdown of the top 5 reasons why Gensol Engineering shares are in free fall.
🚨 1. Ongoing Enforcement Directorate Raids and Detention
The most pressing reason for the panic is the Enforcement Directorate (ED) action against the company and its promoters. On Thursday, the ED conducted high-profile raids in Delhi, Gurugram, and Ahmedabad, detaining co-promoter Puneet Singh Jaggi from a Delhi hotel.
These actions were carried out under the Foreign Exchange Management Act (FEMA), with sources indicating alleged violations related to financial misconduct and possible money laundering. The involvement of a federal agency has added immense pressure on the stock.
⚖️ 2. SEBI Interim Order and Market Ban
The Securities and Exchange Board of India (SEBI) has issued an interim order banning Anmol Singh Jaggi and Puneet Singh Jaggi, the promoter brothers, from accessing the securities market until further notice.
SEBI’s investigation followed a complaint lodged in June 2024, alleging manipulation of Gensol’s share price and diversion of funds. The regulator’s sharp move to freeze their market participation has been interpreted as a signal of the severity of the allegations.
📉 3. Stock Freefall: 12 Days of Lower Circuit Hits
Gensol Engineering shares have now hit the lower circuit limit for 12 consecutive sessions, a staggering decline that has wiped out more than 44% of investor wealth in less than two weeks.
On April 25, the stock fell another 5% to ₹91.05 on the BSE and ₹90.16 on the NSE, marking new 52-week lows. From its peak of ₹1,125.75, the stock has now tanked 91.91%, one of the worst drawdowns for any mid-cap in recent memory.
🛑 4. Halt on Planned Stock Split
In an effort to manage its falling share price earlier, Gensol Engineering had proposed a stock split in the ratio of 1:10. However, SEBI has now directed the company to put the plan on hold, pending further investigation.
This move not only delays possible relief for retail investors but also reflects the regulator’s growing scrutiny over the company’s corporate governance standards.
📊 5. Cracking Fundamentals and Loss of Market Trust
While the broader market has seen volatility, the crisis at Gensol is company-specific. The rapid collapse in share price has been driven by more than technicals—it’s about trust erosion.
The company, which once traded at over ₹1,100 per share, now has a market capitalization of just ₹346 crore. Key fundamentals like a PE ratio of 3.38 and a Price-to-Book ratio of 1.17 no longer inspire confidence, especially when clouded by serious regulatory red flags.
🏢 What Does Gensol Engineering Do?
For context, Gensol Engineering operates in the solar energy consulting, engineering-procurement-construction (EPC) services, and electric vehicle (EV) leasing segments. It was considered a rising player in the green tech and mobility sector.
However, the ongoing scandals have turned the company into a cautionary tale on how poor corporate governance can derail even promising business models.
🧠 Investor Takeaway: Should You Stay or Exit?
For current shareholders, this situation is extremely concerning. While the stock may look “cheap,” the legal overhang, regulatory scrutiny, and loss of promoter credibility suggest that more pain could follow.
Unless there is clear communication from the company, a resolution of the ED and SEBI matters, and a restoration of trust, bottom-fishing this stock could be dangerous.
📌 Conclusion: Gensol’s Fall is a Lesson in Corporate Transparency
The dramatic collapse of Gensol Engineering shares reminds investors that no business is immune to bad governance. Whether it’s SEBI action, ED raids, or promoter misconduct, the damage to investor sentiment can be swift and severe.
Stay alert. Do your due diligence. And most importantly, remember: governance matters as much as growth.
