Gensol Engineering shares hit back-to-back lower circuits; here's why

Gensol Engineering shares hit 5 per cent lower circuit on April 21, 2025, at ₹111.65 per share on BSE. The southward movement in the shares came after reports suggested the government is considering initiating a probe by the Serious Fraud Investigation Office (SFIO) against Gensol Engineering and its promoters. 

Around 12:11 PM, Gensol Engineering share price was down 4.98 per cent at ₹111.65 per share on BSE. In comparison, the BSE Sensex was up 1.17 per cent at 79,474.16. The market capitalisation of the company stood at ₹424.3 crore. The 52-week high of the stock was at ₹1,125.75 per share and the 52-week low was at ₹111.65 per share. 

 

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Gensol Engineering shares fell for the eighth straight session after the company's promoters were alleged of getting involved in fraudulent fund diversification. When Gensol Engineering made its public market debut through a small and medium enterprises (SME) initial public offering (IPO) in September 2019, its promoters held a commanding 96 per cent stake. Now, that figure has shrunk to a “negligible” fraction. 

 

According to an order by the Securities and Exchange Board of India (Sebi), this steep decline was not organic but allegedly orchestrated through a network of false disclosures, sham transactions, and diverted funds, which effectively led to a near-total promoter exit, even as unsuspecting investors were left holding the bag.

 

Meanwhile, the Ministry of Corporate Affairs (MCA) is conducting due diligence in the alleged fund diversion case involving Gensol Engineering, through the offices of the Director General (DG) and the Registrar of Companies (RoC), as per Business Standard sources.

 

The company’s ₹18 crore IPO had seen modest demand, having been subscribed 1.3 times with total bids of ₹23 crore. After listing, the promoters’ holding dropped to 70.72 per cent. In July 2023, Gensol — in the business of providing solar consulting services, and engineering, procurement and construction (EPC) services — shifted to the mainboard, gaining access to a broader and more liquid investor base. 

 

In one year, shares of Gensol Engineering lost 87 per cent as compared to Sensex's rise of 6.6 per cent.