Gensol Engineering's share price sharply declined on Tuesday, May 13, hitting a 5% lower circuit. The plunge came after the resignation of two top executives, triggering investor concerns about ongoing regulatory issues and corporate governance.
Market Performance
At 10:15 AM on May 13, Gensol Engineering's share price was locked at ₹51.25, down from its previous close of ₹53.95. This marks a 5% drop in early trading hours.
This is the second consecutive session where the stock has hit the lower circuit limit, highlighting heightened selling pressure from investors.
Major Executive Exit Triggers Market Jitters
The sharp fall in Gensol Engineering's share price follows the resignation of:
- Anmol Singh Jaggi – Managing Director
- Puneet Singh Jaggi – Whole-time Director
Both resignations were effective from the close of business hours on May 12, 2025, and were submitted in compliance with an SEBI interim order dated April 15, 2025.
"I am hereby resigning... due to the direction given under SEBI Interim Order," Anmol Singh Jaggi stated in his resignation letter.
SEBI Crackdown and Allegations
The resignations come in the wake of serious allegations from the Securities and Exchange Board of India (SEBI) against the Jaggi brothers:
- Barred from the securities market indefinitely
- Alleged misuse of ₹978 crore term loan
- Loan intended for EV acquisition via BluSmart Mobility
Misuse of Funds: The Breakdown
- ₹978 crore loan was jointly sanctioned by IREDA and PFC
- Purpose: Acquire 6,400 electric vehicles for BluSmart Mobility
- Actual purchase: Only 4,700 EVS for ₹567 crore
- ₹262 crore remains unaccounted
These findings point toward potential financial misappropriation and governance lapses, leading to strict interim restrictions from SEBI.
About the Company
Gensol Engineering, co-founded by the Jaggi brothers, is a most important player in the clean energy and electric mobility sector. It is closely linked with BluSmart Mobility, which offers electric cab services and operates in the EV leasing industry.
Both companies have been central to India's push for sustainable transport, but the recent developments could impact their credibility and investor confidence.
Summary
The resignation of Gensol Engineering's top leadership amid an SEBI probe has sent Gensol Engineering's share price tumbling. The company faces serious challenges with ₹262 crore in loan funds unaccounted for and the founders barred from market activities.
The events underline the importance of transparent governance, especially in capital-intensive sectors like clean energy and electric mobility.
Easy & quick
Leave A Comment?