Shares of Gensol Engineering Ltd. continued their sharp decline on Tuesday, April 8, as they hit another 5% lower circuit — a repeat of Monday’s market action. The stock, which once touched an all-time high of ₹1,147 in June 2023, now trades at just ₹140, marking an 88% erosion in value within less than a year.
The downward spiral intensified after rating agencies ICRA and CARE downgraded Gensol’s credit ratings, citing delayed debt servicing and potential lapses in corporate governance. ICRA further alleged that some debt servicing documents provided by the company “were apparently falsified,” triggering serious concerns about Gensol’s financial health and transparency.
Since February 21, the stock has seen gains on just two occasions in 29 trading sessions — a 5% upper circuit on March 19 and a 3% rise on April 3. As a result, the stock has been placed under the Enhanced Surveillance Measure (ESM Stage 1) by stock exchanges, introducing stricter trading rules, including a 5% price band and 100% margin requirements.
In an interview with CNBC-TV18, Gensol’s Chairman and Managing Director Anmol Singh Jaggi dismissed the allegations, stating there was “zero wrongdoing.” He added that an independent committee had been formed to probe the issues.
Meanwhile, despite earlier promises to increase their stake, company promoters were seen paring some of their holdings in the open market. However, Gensol also allotted 4.43 lakh equity shares to promoters recently at ₹871 per share, following the conversion of preferential warrants and a payment of ₹28.99 crore.
As the storm continues, investors are left grappling with uncertainty over the company’s financials and future stability.
