Gensol Engineering Share Price Hits All-Time Low After SEBI Bars Promoters For Alleged Fund Diversions

Gensol Engineering Ltd.'s share price fell to an all-time low level on Wednesday as the stock hit the 5% lower circuit limit after the Securities and Exchange Board of India's decision to bar the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, for alleged fund diversion and record falsification.

The markets regulator has prohibited the Jaggi brothers from holding any key managerial positions within the company, effectively removing them from their leadership roles. Additionally, the market watchdog has halted Gensol's announced stock split, further impacting investor sentiment.

The investigation centres around Rs 975 crore in loans raised by Gensol to purchase 6,400 electric vehicles. However, only 4,704 EVs were procured for Rs 567.73 crore, leaving over Rs 200 crore unaccounted for. This discrepancy has raised serious concerns about the company's financial practices and integrity.

In response to these findings, SEBI has directed the appointment of a forensic auditor to thoroughly examine Gensol's books of accounts and those of related parties. This move aims to uncover any further irregularities and ensure transparency in the company's financial dealings.

The scrip fell as much as 5% to Rs 122.68 apiece and it continued to trade at the same level as of 09:25 a.m. This compares to a flat NSE Nifty 50.

It has risen 86.67% in the last 12 months. Total traded volume so far in the day stood at 0.3 times its 30-day average. The relative strength index was at 10.