Gensol Engineering's Shares Tumble Amid Financial Misconduct Probe

Gensol Engineering shares plummet amid financial misconduct probe by the Enforcement Directorate and SEBI. The company, facing scrutiny for alleged misgovernance and fund diversion, sees its stock hit a 52-week low. Co-promoter Puneet Singh Jaggi has been detained, and planned stock split is on hold.

Shares of Gensol Engineering faced significant downward pressure on Friday, sinking by 5% and hitting a new lower limit amidst a mounting crisis at the company.

The crisis-hit firm's stock plummeted to Rs 91.05 on the BSE, marking the lowest permissible trading point for the day and registering a 52-week low. Simultaneously, the NSE recorded a similar 5% fall, bringing the stock to Rs 90.16.

In an unraveling saga spanning 12 trading days, Gensol Engineering has witnessed its shares lose over 44% of their value. This descent has been exacerbated by actions from the Enforcement Directorate, including the detention of co-promoter Puneet Singh Jaggi after raids conducted under FEMA guidelines.

The company's promoter duo, Anmol Singh Jaggi and Puneet Singh Jaggi, are currently under investigation following a Sebi report citing potential financial misconduct and fund diversion.

Sebi issued an interim order last week barring the Jaggi brothers from participating in securities markets until further notice. Their fallout stems from complaints dating back to June 2024 regarding share price manipulation and fund misdirection, which led Sebi to intervene and halt Gensol's planned stock split of 1:10.

(With inputs from agencies.)