Gensol Engineering shares have collapsed over 91% in the past five years, sliding from an all-time high of ₹2,392.05 on October 13, 2023, to 5% lower circuit at ₹122.68 as of April 16, 2025.
Currently, the massive erosion in investor wealth comes in the wake of serious regulatory action by the Securities and Exchange Board of India (SEBI) against the company and its promoters.
In an interim order, SEBI barred promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding directorial or key managerial roles in Gensol Engineering. Both the company and the promoter duo have also been restrained from buying, selling, or dealing in securities. The regulator directed Gensol to halt its proposed 1:10 stock split, which it suspects was aimed at luring retail investors amidst the ongoing turmoil.
The SEBI order outlined multiple allegations, including misuse and diversion of company funds for personal gain, submission of fake loan conduct letters to rating agencies, and attempts to mislead investors, lenders, and regulatory authorities. It noted a complete breakdown of internal controls, stating the company was run “like a proprietorship firm” by the Jaggi brothers.
Further, SEBI highlighted that Gensol used funds from sanctioned loans worth ₹978 crore from IREDA and PFC to buy 6,400 electric vehicles but ended up purchasing only 4,704 units worth ₹568 crore. The balance amount of ₹262 crore remains unaccounted for.
The market regulator has appointed a forensic auditor to review the company’s books, with a report expected within six months. Meanwhile, rating agencies had downgraded Gensol’s debt to junk status after receiving suspected forged documents, prompting deeper investigations.
Once a market favorite in the EV segment, Gensol now faces a credibility crisis with investor confidence at an all-time low.
