In percentage terms, Gensol Engineering has seen retail shareholding increase to 23.44% from 13.94% during a 12-month span between December 2023 and December 2024.
On Tuesday, April 15, market regulator Securities & Exchange Board of India (SEBI), issued interim orders against Gensol Engineering and its promoters Anmol Singh Jaggi and Punit Singh Jaggi, restraining them from holding positions of a director in the company. Both have also been restrained from buying, selling or dealing in securities.
Allegations include availing loans worth ₹978 crore from IREDA and PFC and using some part of it for personal expenses. There are also allegations of round tripping of funds and fund diversion from Gensol to private entities and promoters.
From its record high of ₹1,147, shares of Gensol Engineering have already crashed to levels of ₹129, a price erosion of nearly 90% from the top. Such has been the damage that the stock is now under the ‘T’ group of shares and has been placed under Stage 1 of the Enhanced Surveillance Measures (ESM) framework.
Stocks which are placed under the ‘T’ Group require mandatory delivery. They have a circuit limit of 5% and concepts of BTST (Buy Today, Sell Tomorrow) and STBT (Sell Today, Buy Tomorrow) are not applicable for such stocks. Intraday trading is barred for such stocks as well.
Gensol Engineering shares have been on a downward spiral, more so since their credit ratings were downgraded by rating agencies ICRA and CARE.
Under stage 1 of the ESM framework, the stock follows a trade-for-trade mechanism with a price band of 5%. Applicable margins will be 100% from the T+2 day. In case the security is already in a 2% price band, it stays within that.
In an interaction with CNBC-TV18 post the ratings downgrades, Gensol Chairman and Managing Director Anmol Singh Jaggi had denied allegations of any wrongdoings and said that the promoters remain fully committed to the business.
Last month, Gensol Engineering approved the allotment of 4,43,934 equity shares following the conversion of warrants issued on a preferential basis to the promoter category.
India’s domestic mutual funds do not have any exposure to Gensol Engineering as of the December quarter.
