Gensol Engineering Faces ₹262 Crore Loan Misappropriation Scandal; Share Price Plunges from ₹1125 to ₹124, Investors in Panic.
Gensol Engineering Share Crashes: Construction company Gensol Engineering Limited experienced a significant share price decline. On Tuesday, the company's shares plummeted 5% on the Bombay Stock Exchange (BSE), reaching ₹123.65, its 52-week low. This drop represents an 83.85% decrease in the company's share value year-to-date in 2025.
Unaccounted ₹262 Crore Loan
A major contributing factor to this decline is the unaccounted for ₹262 crore loan. Investigations revealed that the funds received were misappropriated. Approved loans were allegedly used for personal expenses, purchasing high-value properties, and benefiting promoters and their relatives. This is a serious issue, as the company's promoters are accused of misusing the loan funds.
SEBI Takes Action and Intensifies Surveillance
This share price crash followed action by the Securities and Exchange Board of India (SEBI) against the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. SEBI has accused the promoters of fraud and fund misappropriation, subsequently banning them from the Indian stock market and prohibiting them from holding key positions in any listed company.
The BSE and NSE have placed Gensol's securities under "Enhanced Surveillance Measures" (ESM), a step taken for companies with a market capitalization below ₹1,000 crore. This further contributed to the decline in Gensol's share price.
Company Share Price History
Gensol Engineering's shares traded at ₹123.65 on the BSE, significantly down from their 52-week high of ₹1125.75. The company currently has a market capitalization of ₹469.90 crore. Over the past three months, the company's shares have fallen by 83.85%, and a staggering 52.75% in the last month alone, representing a substantial blow to investors.
SEBI Investigation and Promoter Fund Misuse
The SEBI investigation revealed that the promoters used the loan funds not only for personal expenses but also for purchasing high-end properties and benefiting relatives. This led to SEBI's b action. The case now adds to the growing list of Indian startups facing regulatory compliance issues.
