Solar stock hits 5% lower circuit after SEBI bans its promoters from markets and also rejects 1:10 stock splitSolar stock hits 5% lower circuit after SEBI bans its promoters from markets and also rejects 1:10 stock split

Introduction:

Leading solar energy firm faces regulatory heat as Sebi uncovers fund diversion, fake documentation, and misuse of loans, prompting a ban on key promoters from market access and leadership roles in listed companies.

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Share price movement of Gensol Engineering:

On April 16, 2025, Gensol Engineering Ltd opened at ₹123.65, down 4.99% from its previous close of ₹130.15. The stock remained flat throughout the session with a high and low of ₹123.65. By 11:12 AM, it was trading unchanged at ₹123.65, with a market capitalization of ₹469.90 crore.

Sebi Bans Gensol Promoters Over Fund Diversion:

Sebi has banned Gensol Engineering promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market or holding leadership roles in listed companies. This comes after an investigation into financial irregularities, including fund diversion and fake documents.

The Securities and Exchange Board of India found that Gensol’s promoters misused over ₹200 crore through related-party transactions, allegedly diverting funds for luxury purchases and real estate. The funds raised for electric vehicle (EV) projects were misappropriated.

Sebi also expressed concern over Gensol’s recent 1:10 stock split. It is a step to attract retail investors despite the company’s financial issues. The regulator warned that this corporate action might not be in investors’ best interest.

Stock performance of Gensol Engineering for Period of 1 week, 6 months, and 1 year:

Gensol Engineering Ltd delivered a -7.53% return over the past week. It declined by 84.4% in the past six months. The stock has dropped 86.0% over the past year.

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Shareholding pattern of Gensol Engineering:

Particulars	Dec 2024	Sep 2024	Jun 2024
Promoter	62.70%	62.60%	62.80%
FII	0.60%	2.30%	2.00%
DII	1.40%	0%	0%
Public	35.30%	35.10%	35.30%

About Gensol Engineering:

Gensol Engineering Ltd (NSE: GENSOL) is a leading solar consulting and EPC company in India, ranked among the top 10 EPC players and top 5 independent EPC service providers.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.