Gensol Engineering shares slumped 5% on Wednesday, hitting the lower circuit limit on the benchmark index BSE , after the securities and exchange board of India ( Sebi ) announced barring the company and its promoters from the securities market .
The market regulator's move came in response to allegations of fund diversion and serious lapses in the company’s corporate governance.
The stock slipped 4.99% to Rs 123.65 on the BSE and dropped the full 5% to Rs 122.68 on the NSE , marking the lowest permissible trading level for the day.
Sebi, in its order, accused the company’s promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi of misusing and diverting company funds for personal gain. Both have been barred from acting as directors or holding any key managerial positions in Gensol Engineering until further notice. The regulator has also instructed the company to suspend its recently announced stock split.
Sebi’s action follows a complaint received in June 2024, which raised concerns around share price manipulation and financial irregularities. During its investigation, Sebi found evidence of forged documents and misleading statements made by the company to rating agencies, lenders, and investors.
“The company has attempted to mislead Sebi, the CRAs (credit rating agencies), the lenders and the investors by submitting forged conduct letters purportedly issued by its lenders,” Sebi noted in its 29-page interim order issued Tuesday.
The watchdog highlighted a particularly damning disclosure from ICRA, which had downgraded Gensol’s bank facilities rating to [ICRA]D, citing “ongoing delays in debt servicing” despite the company's claims of having "sizeable available liquidity".
The audit firm revealed that some documents provided by Gensol regarding its debt servicing track record were “apparently falsified”, raising concering about its governance and liquidity health.
Gensol had earlier denied any wrongdoing, issuing a statement on March 5, 2024, signed by CEO Anmol Singh Jaggi, rejecting the falsification claims made by the rating agency.
Gensol was first listed on the BSE SME Platform on 15 October 2019, before moving to the main boards of both the BSE and NSE on 3 July 2023.
According to data from Screener.in, Gensol posted remarkable growth over the past few years. On a standalone basis, the company’s revenue surged from Rs 61 crore in FY 2017 to Rs 1,152 crore in FY 2024. Its trailing 12-month figures indicate further growth, with sales reaching Rs 1,297 crore.
The market regulator's move came in response to allegations of fund diversion and serious lapses in the company’s corporate governance.
The stock slipped 4.99% to Rs 123.65 on the BSE and dropped the full 5% to Rs 122.68 on the NSE , marking the lowest permissible trading level for the day.
Sebi, in its order, accused the company’s promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi of misusing and diverting company funds for personal gain. Both have been barred from acting as directors or holding any key managerial positions in Gensol Engineering until further notice. The regulator has also instructed the company to suspend its recently announced stock split.
Sebi’s action follows a complaint received in June 2024, which raised concerns around share price manipulation and financial irregularities. During its investigation, Sebi found evidence of forged documents and misleading statements made by the company to rating agencies, lenders, and investors.
“The company has attempted to mislead Sebi, the CRAs (credit rating agencies), the lenders and the investors by submitting forged conduct letters purportedly issued by its lenders,” Sebi noted in its 29-page interim order issued Tuesday.
The watchdog highlighted a particularly damning disclosure from ICRA, which had downgraded Gensol’s bank facilities rating to [ICRA]D, citing “ongoing delays in debt servicing” despite the company's claims of having "sizeable available liquidity".
The audit firm revealed that some documents provided by Gensol regarding its debt servicing track record were “apparently falsified”, raising concering about its governance and liquidity health.
Gensol had earlier denied any wrongdoing, issuing a statement on March 5, 2024, signed by CEO Anmol Singh Jaggi, rejecting the falsification claims made by the rating agency.
Gensol was first listed on the BSE SME Platform on 15 October 2019, before moving to the main boards of both the BSE and NSE on 3 July 2023.
According to data from Screener.in, Gensol posted remarkable growth over the past few years. On a standalone basis, the company’s revenue surged from Rs 61 crore in FY 2017 to Rs 1,152 crore in FY 2024. Its trailing 12-month figures indicate further growth, with sales reaching Rs 1,297 crore.
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