Gensol Share Price Crash: What Retail Shareholder Should Know?

On April 16, 2025, Gensol Engineering share price locked in 5% lower circuit at ₹123.65 on BSE. Gensol share price crashed after the SEBI’s action on the company and its promoters on alleged misuse of funds.

The allegation against Gensol Engineering includes loans worth ₹978 crore from IREDA and PFC and using some part of it for personal expenses. The promoters have been charged for round tripping of funds and fund diversion from Gensol to private entities and promoters.

On Tuesday, April 15, 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 promoters have also been restrained from buying, selling or dealing in securities.

Impact on Nearly 1 Lakh Retail Shareholders

As of December 2024, Gensol Engineering Ltd. has close to 1 lakh retail shareholders—those whose authorised share capital is up to ₹2 lakh. Over a 12-month period from December 2023 to December 2024, the company’s retail shareholding rose from 13.94% to 23.44%.

Gensol share price has taken a severe hit, plunging from a peak of ₹1,147 to just ₹123, a staggering decline of nearly 90%. Due to this sharp fall, Gensol Engineering is now classified under the ‘T’ group of shares and has been moved to Stage 1 of the Enhanced Surveillance Measures (ESM) framework.

The decline in Gensol’s shares has accelerated following credit rating downgrades by ICRA and CARE. Under Stage 1 of ESM, trading in the stock is on a trade-for-trade basis with a 5% price band. From the T+2 day, a 100% margin requirement applies. If the stock is already under a 2% circuit, that limit remains.

Trading Rules on Gensol Shares

Stocks in the ‘T’ group are subject to stricter trading rules: mandatory delivery is required, there’s a 5% circuit limit, and intraday trading is prohibited. Additionally, BTST (Buy Today, Sell Tomorrow) and STBT (Sell Today, Buy Tomorrow) trades are not allowed.

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