Gensol Engineering Share Price Falls 5% After SEBI Imposes Restrictions on Promoters

Market Performance

On April 16, 2025, Gensol Engineering Ltd.'s share price declined sharply by 5%, reaching ₹122.68 on the National Stock Exchange. The stock hit its lower circuit limit during the trading session, with a total trading volume of 88,736 shares. Over the past month, the company's stock has dropped by 46%, and it has fallen by 86% over the last 12 months.

Regulatory Action

The Securities and Exchange Board of India has issued an interim order against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The order was based on findings about the alleged diversion of company funds and inaccurate disclosures.

According to SEBI, the promoters managed the publicly listed entity like a personal business. Company funds were transferred to related parties for purposes unrelated to the company's operations, which SEBI highlighted as a serious breach of internal controls and corporate governance standards.

In response to these findings, SEBI took several measures:

• The promoters are barred from holding any position as directors or key managerial personnel in the listed companies.
• They have been barred from trading in securities and from accessing capital markets.
• Gensol Engineering has been instructed to halt its proposed stock split in the 1:10 ratio, which was announced prior to the regulatory action.

Company Information

Gensol Engineering operates in the solar engineering, procurement, and construction (EPC) industry. Following SEBI's interim order, the company's governance and financial practices have been scrutinized. The regulator expressed concern over a sharp decline in promoter shareholding and the possibility of further offloading of shares, which could impact retail investors.

Conclusion

Gensol Engineering's stock declined following SEBI's interim order, highlighting governance issues and fund mismanagement by the company's promoters. The regulatory action includes a trading ban for the promoters and the suspension of a proposed stock split. These actions are intended to resolve the issues raised and protect the interests of investors.