Shares of Gensol Engineering Ltd plummeted nearly 56% in April, ending the month at Rs 77.29 amid severe regulatory and corporate governance concerns. The stock, which was locked in consecutive lower circuits, has lost over half its value from its April opening, wiping out significant market capitalization and trapping thousands of retail investors.
The steep fall was triggered by enforcement action from the Directorate of Enforcement (ED), which conducted search and seizure operations at Gensol’s offices in Ahmedabad and Gurgaon under FEMA, 1999. The agency seized documents, digital records, and financial files. Orders were also issued to Axis Bank, HDFC Bank, and ICICI Bank under Section 37 of FEMA and Section 132(3) of the Income Tax Act. Gensol received the seizure memo officially on April 27, 2025.
The company stated it is currently unable to determine the financial impact of the raid but confirmed it is exploring legal recourse.
Meanwhile, despite emerging allegations of fraud and corporate misconduct, the number of retail investors surged during the March quarter—from 91,015 to 1,04,458—raising their total stake from 23.44% to 30.68%. Ironically, this came as promoter holding nearly halved and retail investors continued to accumulate shares now stuck in lower circuits, with no clear exit route.
At 9:44 AM on April 30, shares of Gensol were locked at Rs 77.29, with the market cap falling to just Rs 2,970 crore from significantly higher levels earlier in the year.
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