the Gensol Engineering share price hit the lower circuit today, falling 5% to open at Rs 122.68 per shar after market regulator SEBI cracked the whip on the company’s promoters, freezing their roles and halting a much-anticipated stock split. From a dream run in the renewable energy and EV segment to serious allegations of financial misconduct, Gensol Engineering is now facing the heat.
Let’s take a look the key points investors need to know after SEBI clampdown and the stock performance of the company so far-
SEBI bans Gensol promoters over fund diversion allegations
In a strongly worded interim order, SEBI has barred Gensol Engineering’s promoters- Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities market until further notice. They have also been prohibited from serving as directors or key managerial personnel in Gensol Engineering. SEBI’s probe revealed that funds raised for business expansion, especially for purchasing electric vehicles, were instead diverted to promoter linked entities.
Company treated like a ‘personal piggybank’
Furthermore, the market watchdog in its report said that the promoters treated the public company like a private business. According to the 29-page order, more than Rs 200 crore was routed through a car dealer and cycled back to entities linked to the Jaggi brothers. Some of these funds were allegedly used for personal luxuries, including premium real estate, instead of the intended business purposes.
Gensol stock split put on hold
Gensol Engineering had recently announced a stock split in the ratio of 1:10. However, SEBI has directed the company to suspend the plan for now, citing concerns that the corporate action could mislead investors amid serious governance lapses.
Forged documents and misleading debt records
The market regulator also found that Gensol Engineering submitted forged documents to credit rating agencies to create a false narrative of timely loan repayments. Loans worth Rs 975 crore had been raised from institutions like IREDA and PFC. While these were meant to boost its clean mobility business, SEBI found that only a portion of the funds were used.
Gensol Engineering market meltdown: A sharp fall from its peak
Gensol Engineering’s share price has taken a brutal beating. In just the last five trading sessions, the company’s share price has slipped by 17%, while the one month decline stands at a staggering 46%. The pain runs deeper, an 85% drop over the past six months, 86% over the past year, and an 83% fall so far in 2025, wiping out significant investor wealth.
The company’s market capitalisation now stands at Rs 498.35 crore. The stock once touched a 52 week high of Rs 1,124.90, but has since plummeted to a 52 week low of Rs 126.02.