Gensol Engineering Shares Hit 5% Lower Circuit; Anmol Singh Jaggi Resigns Amid SEBI Probe

Gensol Engineering, a company involved in renewable energy and electric vehicle (EV) initiatives, is facing a significant financial crisis following a recent order from the Securities and Exchange Board of India (SEBI). This has led to a sharp drop in the company’s stock price.

A Breakdown of Corporate Governance at Gensol

SEBI’s investigation has uncovered serious issues with Gensol’s corporate governance, particularly involving the promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.

The regulators allege that funds intended for the purchase of electric vehicles were diverted for personal use, including the purchase of a luxury apartment. These allegations raise concerns about the company’s financial oversight.

The core of the issue is the alleged misuse of a ₹977.75 crore loan from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), which was intended for buying 6,400 electric vehicles.

However, only 4,704 vehicles were purchased, with over ₹207 crore unaccounted for.

SEBI’s Findings and Company Response

The SEBI probe, launched after a complaint in June 2024, also revealed falsified documents submitted by the company to credit rating agencies, misleading investors and lenders. This has led to a significant drop of 83% in Gensol’s share price in 2025, raising concerns about the company’s future stability.

In light of the SEBI order, Gensol has pledged to fully cooperate with a forensic audit requested by the regulator. The company has promised to provide complete access to its records to ensure transparency and accountability during the investigation.

Promoters Step Down Amid Crisis

Both Anmol Singh Jaggi and Puneet Singh Jaggi have resigned from their roles as directors at Gensol, following the SEBI order.

Gensol has expressed its commitment to stabilising its operations, despite the ongoing challenges, and remains focused on its business objectives.

Share Price Performance

On April 17, 2025, Gensol Engineering Ltd. saw its share price fall to ₹117.50, touching the lower circuit limit of 5%. This marks a significant drop from the previous day’s close of ₹123.65, and the stock traded at a new 52-week low. The company’s 52-week high remains far higher, at ₹1,125.75, highlighting the extent of its recent decline.

Read More: BluSmart Halts Ride Bookings in Delhi-NCR, Bengaluru Amid Gensol Probe.

Conclusion

Gensol Engineering’s current crisis highlights the vulnerabilities that companies can face when corporate governance breaks down, particularly in industries like renewable energy and electric vehicles.

The ongoing SEBI investigation, combined with the resignation of key promoters and the significant financial misconduct allegations, has caused a steep decline in the company’s stock price, undermining investor confidence. Despite these challenges, Gensol has pledged to cooperate fully with the forensic audit and stabilise its operations.

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