Gensol Engineering share price hits lower circuit for eight straight session; here’s why

Gensol Engineering share price fell to a 52-week low during Monday’s trading session after reports surfaced that the markets regulator SEBI identified significant governance issues at Gensol Engineering Ltd. The regulators observed “no manufacturing activity” at the company’s electric vehicle (EV) facility in Pune, noting that only two to three workers were present when an official from the National Stock Exchange (NSE) visited the location earlier this month.

These findings were included in SEBI’s interim order on April 15, issued following a complaint lodged in June 2024 that alleged Gensol’s involvement in share price manipulation and the misappropriation of funds by the company and its promoters, according to PTI.

In its investigation, SEBI highlighted numerous inconsistencies and misleading disclosures made by Gensol Engineering, which is led by brothers Anmol Singh Jaggi and Puneet Singh Jaggi.

Based on news reports, an official from the NSE visited Gensol Electric Vehicle Private Ltd’s facility in Chakan, Pune, on April 9 and observed minimal activity. “It was discovered that there was no manufacturing taking place at the facility, with only 2-3 workers present,” stated SEBI. 

The NSE official also examined electricity bills and found that the highest amount billed by Mahavitaran over the past year was only ₹1,57,037.01 in December 2024, which suggests limited electricity consumption and supports the conclusion of no manufacturing operations. “Thus, it can be concluded that there has been no manufacturing activity at the plant, which is located on a leased property,” the order explained.