Shares of Gensol Engineering extended losses in early trade on Wednesday and were locked in the 5% lower circuit for a second straight day on April 16. The stock has lost 7.5% since last week after market regulator, the Securities and Exchange Board of India prima facie found the company and its promoters involved in mis-utilisation and fraudulent diversion of funds.
With today's slump, the stock also slipped to its 52-week low of Rs 122.68. Over 4.2 million shares of the company were dumped at the aforementioned price. Besides flagging the corporate governance issues, the market regulator has also directed the construction engineering company to put its 1:10 stock split on hold until further orders. The stock has fallen 87% in the last one year.
SEBI has appointed a forensic auditor to examine the books of the company, which had availed Rs 663.89 crore in loan from Indian Renewable Energy Development Authority and Power Finance Corporation, along with a 20% equity contribution for purchasing electric vehicles. However, out of the Rs 829.86 deployed capital, Rs 262.13 crore remained unaccounted.
The market watchdog has also removed the promoter brothers Anmol Singh Jaggi and Puneet Singh Jaggi from holding the post of directorship in the company or any key post. It has also barred the company and the promoters from accessing the securities market.
Initially, Gensol was listed on the BSE SME platform in 2019 before getting listed on the main board on July 03, 2023. Although it is now surrounded with many allegations, the company’s financials have shown an impressive growth over the past few years. For the nine months ended December, its consolidated revenue rose to Rs 1,053 crore from Rs 740.98 crore a year ago and its net grew to Rs 67.5 crore from Rs 49.8 crore a year ago.
