Gensol Engineering shares hit lower circuit for 14th straight session after ED raids; nosedive 55% in April

Shares of Gensol Engineering continued their downtrend on Tuesday, losing another 5% to hit lower circuit for the fourteen consecutive sessions. The crisis-hit company has lost 55% of its market value so far in April, with the stock price touching fresh 52-week low of ₹82.20 on the BSE today. At the current level, the stock, which is under Sebi probe, is down 92.6% from its 52-week high of ₹1,125.75 hit on June 24, 2024.

The fresh sell-off in Gensol shares were triggered after the Directorate of Enforcement (ED) conducted search and seizure operations at the company's premises in Ahmedabad and Gurgaon.

In an exchange filing last evening, Gensol Engineering confirmed that the raids were carried out under provisions of the Foreign Exchange Management Act (FEMA), 1999. The ED officials seized several documents, electronic devices, and financial records during the search operation conducted on April 27.

“The quantifiable financial impact on the company cannot be ascertained at this point in time,” the release noted. The company is in the process of taking appropriate legal measures in respect of the search and seizure operation by the Directorate of Enforcement, it added.

From boom to doom amid ₹978 crore scam

Once a rising star of Dalal Street, Gensol delivered a staggering 2,714% return over last five years, with the shares surging from ₹85 to ₹2,392 between 2019-2024. Almost all the analysts were quite bullish on the stock amid consistent growth in its profitability, while investors were excited by its expansion story, diversifying from solar consultancy services to electric mobility solutions.

The sell-off in Gensol shares started in March 2025 after domestic brokerages ICRA and Care Rating downgraded homegrown engineering, procurement and construction (EPC) and solar advisory services firm, raising serious concerns about liquidity risk.

Brothers Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol and BluSmart, are facing regulatory action by the Securities and Exchange Board of India (Sebi) over corporate governance violations and siphoning of funds meant for electric vehicle purchase. The capital market regulator Sebi has barred promoter Jaggi brothers from holding any directorial or key managerial positions in the company.  The action was taken after the Sebi conducted an investigated based on a complaint received in June 2024, alleging serious governance lapses, fund diversion and submission of falsified documents.

Adding to the woes, the National Financial Reporting Authority (NFRA) and the ED have initiated parallel probes against Gensol’s Promoters into the allegations of fund diversion and financial irregularities by them. The Jaggi brothers has allegedly misused loans worth ₹978 crore taken from government-backed institutions like Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC).

 Last week, PFC, a state-run non-banking finance corporation (NBFC), lodged a complaint in the economic offences wing of the Delhi Police, alleging Gensol wilfully falsified documents. The state-run NBFC said it sanctioned ₹633 crore to Gensol as part of FAME and PM E-Bus Seva policies to incentivise electric mobility, adding that, “this funding was earmarked for the procurement of 6,000 EVs. ₹587 crore for the procurement of 5,000 electric four-wheelers for lease to BluSmart Mobility’s ride-hailing service, and ₹46 crore for the procurement of 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not availed.”

Another lender to Gensol Engineering, IREDA also filed a similar complaint against the company, its promoter Anmol Singh Jaggi, and associated companies for alleged falsification of documents and dilution of promoter holding without lender approval.

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