Gensol Engineering Share Price Surges to ₹65.56 Despite Mounting Legal and Financial Woes

The Gensol Engineering share price locked in a 5% upper circuit on the BSE at ₹65.56 per share during Friday’s trade, marking the third consecutive session of gains. This bullish movement comes amid a turbulent period for the renewable energy solutions provider, which is currently under the scanner for alleged financial misconduct.

The sudden uptick in Gensol Engineering share price comes despite the resignation of the company’s Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi, both of whom are at the center of serious allegations of fund diversion. The broader market sentiment, in contrast, remained subdued with the BSE Sensex slipping 0.16% to 81,202.74.

At the current price of ₹65.56. However, the stock has seen a sharp downfall from its 52-week high of ₹1,125.75, now trading perilously close to its 52-week low of ₹51.84.

Regulatory Crackdown and SEBI’s Interim Order

In April, the Securities and Exchange Board of India (SEBI) issued an interim order implicating both Jaggi brothers for allegedly misusing public funds, involving purchases of luxury real estate and complex fund-routing strategies. Following this, SEBI directed Gensol Engineering to halt a proposed stock split, further intensifying scrutiny around its governance practices.

The capital markets watchdog initiated the probe following multiple complaints and credit rating downgrades from CARE Ratings and ICRA, citing defaults by Gensol’s affiliate, BluSmart Mobility.

Insolvency Proceedings and Ireda Petition

Adding to the company’s woes, Indian Renewable Energy Development Agency (Ireda) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Gensol Engineering after the company defaulted on a loan of ₹510 crore. If admitted by the National Company Law Tribunal (NCLT), creditors will be required to submit claims for resolution, and the existing equity value may be entirely wiped out.

An internal review by Ireda, as per RBI guidelines, uncovered that Gensol’s promoters diluted their shareholding without prior lender consent, violating contract terms. Subsequently, Ireda lodged a formal complaint with the Economic Offences Wing on April 24.

Outlook

While the Gensol Engineering share price remains resilient in the short term, the underlying fundamentals are under intense pressure. With multiple regulatory investigations, insolvency proceedings, and corporate governance issues in play, the outlook for shareholders is increasingly uncertain.

Investors are advised to exercise caution and monitor developments from SEBI, Ireda, and NCLT closely.