Shares of Gensol Engineering Ltd. plummeted by ₹1,000, settling at ₹147 after hitting the 5% lower circuit for the second consecutive day. This dramatic fall has wiped out 87% of the stock’s value from its all-time high of ₹1,147 in June last year, raising concerns among investors.
The sharp decline comes in the wake of persistent issues, including credit rating downgrades by ICRA and CARE Ratings, which highlighted governance lapses. The agencies pointed to allegations of falsified documents related to the company’s debt servicing, casting doubt on Gensol’s liquidity and operational integrity.
Over the past month, the stock has posted minimal gains—just two brief upticks of 5% on March 19 and 3% on April 3—further dampening investor confidence. This slump has led to the implementation of Enhanced Surveillance Measures (ESM Stage 1), subjecting the stock to stricter trading conditions, such as a 5% price band and a 100% margin requirement from the T+2 day.
Responding to the allegations, Gensol’s Chairman and Managing Director, Anmol Singh Jaggi, firmly denied any wrongdoing, stating there was “zero wrongdoing.” He also announced the formation of an independent committee to investigate the claims. Despite prior assurances to boost promoter stakes, the promoters were forced to reduce their holdings in the open market.
In a recent move, Gensol allotted 4,43,934 equity shares to promoters through preferential warrants at ₹871 each, following a payment of ₹28.99 crore. Despite these efforts, the stock remains under pressure, locked at ₹147, reflecting deepening investor scepticism.
