Gensol Engineering share price hits 5% lower circuit as promoters resign post SEBI’s action

Stock Market Today: Gensol Engineering share price hit the 5% lower circuit in trade on Thursday, April 17. This was the second straight session when Gensol Engineering share price was locked in the lower circuit. The latest round of selling in Gensol Engineering shares  comes as Anmol Singh Jaggi and Puneet Singh Jaggi, the directors and promoters of Gensol Engineering Ltd  resigned after SEBI barred them from the securities markets. The stock split announced by Gensol Engineering was also put on hold by the market regulator to protect the interest of retail investors.

The Promoters of Gensol Engineering Resign

In  a clarification on the exchanges given by Gensol Engineering, the company said that in compliance with SEBI’s directions in the interim order, Anmol Singh Jaggi and Puneet Singh Jaggi (promoters of the Company) have restrained from holding the position of a director or a Key Managerial Personnel in Gensol, until further orders. They are no longer participating in the management of the Company as per SEBI’s instructions, effective immediately.

Gensol Engineering share price movement

Gensol Engineering share price was locked in the 5% lower circuit on Thursday, while it declined for the seventh consecutive session.

Gensol Engineering's share price opened at ₹117.50 on Thursday, 5% lower than the previous day's closing price of ₹123.65 on the BSE. On the National Stock Exchange (NSE), the share price of Gensol Engineering was trading at ₹116.54, also down by 5% over the previous day's closing price of ₹122.68.

In early February, Gensol Engineering's share price was trading near ₹740, but it has since fallen significantly after regular rating downgrades and amid corporate governance concerns. The Gensol Engineering share price has eroded almost 83% of its value during this period.

Gensol Engineering developments

The news flow around Gensol Engineering has remained unfavourable, impacting investor sentiments. Amidst heightened concerns involving fund diversion and governance violations, the capital markets regulator SEBI announced on Tuesday that Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, would not be allowed to trade in the securities markets until further orders.

Additionally, until additional directives are issued, the regulator has prohibited Anmol and Puneet Singh Jaggi from serving as directors or in other important management positions at Gensol Engineering.

Gensol Engineering made headlines while announcing a 1:10 stock split. However, the market regulator has advised the company to halt the proposed split.

"It must be mentioned that Gensol recently announced a stock split of its shares in the ratio of 1:10, which is likely to attract more retail investors to the scrip. At this stage, allowing this corporate action may not be in the interest of the investors," SEBI said in its order.

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