Gensol Engineering hits back-to-back 5% lower circuit; slips 92% in a month

Gensol Engineering share price: On Wednesday, the Securities Appellate Tribunal (SAT) declined to grant interim relief to Gensol Engineering, which was under scrutiny for alleged fund diversion

Gensol Engineering share price: Shares of Gensol Engineering hit 5 per cent lower circuit at ₹60.45 per share on BSE. In a month, Gensol Engineering stock lost 61 per cent, and in one year the company scrip has lost 92 per cent against Sensex's rise of 10 per cent.

 

At 11:19 AM, Gensol Engineering shares were trading 5 per cent lower at ₹60.45 per share on the BSE. In comparison, the BSE Sensex was up 0.05 per cent at 80,786.95. The market capitalisation of the company stood at ₹229.72 crore. The stock touched its highest level on February 20, 2024, at ₹1,377.1 per share. 

 

The 52-week high of the stock was at ₹1,125.75 per share and the 52-week low of the stock was at ₹60.45 per share. 

 

On Wednesday, the Securities Appellate Tribunal (SAT) declined to grant interim relief to Gensol Engineering, which was under scrutiny for alleged fund diversion. 

 

Gensol had contested an order issued by the Securities and Exchange Board of India (Sebi) on April 15, which barred the company and its promoters from participating in the securities market due to alleged fraudulent activities. 

 

According to legal sources, the Securities Appellate Tribunal (SAT) has directed Gensol to submit its response to Sebi within two weeks. Sebi has been instructed to issue a final order within four weeks, after providing Gensol with a fair hearing.

 

In its appeal, Gensol questioned the urgency behind Sebi’s decision to issue the interim order without granting a prior hearing. The company argued that the order had resulted in significant business losses, potential cancellation of contracts, and could trigger loan defaults that may lead to non-performing assets (NPAs).

 

During the hearing, Gensol also requested a stay on the forensic audit and removal of the freeze on the company’s demat account.

 

Additionally, the Delhi High Court also barred Gensol Engineering and its all-electric ride-hailing subsidiary BluSmart Mobility from transferring or selling over 220 electric vehicles (EVs) leased from SMAS Auto Leasing India Pvt Ltd and Shefasteq OPC Pvt Ltd. Till now, the court has restricted Gensol and Blusmart from transferring or selling over 490 EVs by creating third-party rights.