Gensol Engineering Crashes 5% as SEBI Bans Promoters Over Fraud
Published • 16 April 2025 at 4:55 AM

Gensol Shares Crash After SEBI Action on Promoters: Fund Diversion
Gensol Engineering shares hit the lower circuit, falling 5% to ₹122.68, after SEBI took strict action against its promoters. The market regulator barred Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market and company leadership over allegations of fund diversion and financial misconduct. According to SEBI, funds raised for EV purchases were diverted to promoter-linked entities and used for personal luxuries, including real estate. Over ₹200 crore was allegedly funneled through intermediaries, while forged documents were submitted to credit agencies to misrepresent loan repayments. SEBI has also frozen Gensol’s planned 1:10 stock split, citing governance concerns. Loans totaling ₹975 crore from institutions like IREDA and PFC were mostly misused, SEBI found. Investor sentiment has plunged, with Gensol’s stock down 17% in five days and 46% in a month. It has fallen over 85% in six months, slashing its market cap to ₹498.35 crore. From a 52-week high of ₹1,124.90, the stock now trades near its low of ₹126.02. The company’s credibility, once strong in the clean energy and EV space, is now under intense scrutiny.
₹975 Cr Misused? Gensol Stock Tanks After SEBI Action
- SEBI Action: SEBI barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market and company leadership.
- Allegations: Promoters allegedly diverted funds meant for EV purchases to their own entities and used them for personal luxuries like real estate.
- Fund Misuse: Over ₹200 crore was routed through intermediaries; forged documents were used to misrepresent loan repayments.
- Loan Mismanagement: ₹975 crore in loans from IREDA and PFC were largely misused, according to SEBI’s findings.
- Stock Split Frozen: SEBI halted Gensol’s 1:10 stock split over governance concerns.
- Stock Performance: Shares hit the lower circuit, falling 5% to ₹122.68.
- Investor Losses: Stock has declined 17% in 5 days, 46% in a month, and over 85% in 6 months.
- Market Cap Crash: Market capitalization dropped to ₹498.35 crore.
- Credibility Hit: Once a promising player in the clean energy and EV space, the company’s reputation is now under severe scrutiny.