Gensol Engineering Shares Hit 5% Upper Circuit After Top-Level Resignations
Gensol Engineering Ltd shares surged 5 percent to hit the upper circuit at Rs 56.64 on May 13, reversing a prolonged downtrend that had seen the stock locked in the lower circuit for 17 consecutive trading sessions. The upward movement followed the resignation of key company executives, including the Managing Director and Whole-time Director, amid regulatory action by the Securities and Exchange Board of India (SEBI).
Highlights:
Gensol shares rose 5% to Rs 56.64, hitting the upper circuit on May 13
The surge follows 17 straight sessions of lower circuit hits
Executive resignations seen as a trigger for partial investor relief
Resignation of Anmol and Puneet Jaggi Following SEBI Action
Gensol Engineering notified stock exchanges post-market hours on May 12 about the resignation of Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi. The Jaggi brothers attributed their decision to step down to SEBI’s interim order, which accused them of financial misconduct linked to diversion of funds intended for electric vehicle purchases.
Highlights:
MD Anmol Jaggi and Director Puneet Jaggi resigned effective May 12
SEBI interim order cited as the reason for their exit
Resignation announcement made after market hours
Allegations of Loan Diversion and Unexplained Fund Gaps
SEBI alleged that the Jaggi brothers diverted term loans raised by Gensol to fund personal luxury expenses, including the purchase of a premium apartment at DLF’s The Camellias in Gurugram and golf equipment worth Rs 26 lakh. These funds were originally meant for BluSmart, an EV ride-hailing service co-founded by the Jaggi brothers in 2019.
Highlights:
SEBI accused promoters of diverting loan funds for personal use
Funds allegedly spent on real estate and luxury items
Loans intended to finance EV purchases for BluSmart
Discrepancy in EV Procurement vs Loan Disbursal
Between 2021 and 2024, Gensol Engineering availed term loans totaling Rs 978 crore from IREDA and PFC. Of this, Rs 664 crore was specifically allocated for procuring 6,400 electric vehicles to be leased to BluSmart. However, by February 2024, the company had only procured 4,704 EVs at a cost of Rs 568 crore, leaving a differential amount of Rs 262.13 crore unaccounted for.
Highlights:
Gensol took Rs 978 crore in loans, Rs 664 crore meant for 6,400 EVs
Only 4,704 EVs procured, costing Rs 568 crore
Rs 262 crore remains unaccounted for, says SEBI
SEBI Sanctions and Operational Fallout for BluSmart
Following the preliminary findings, SEBI barred the Jaggi brothers from holding any board or management positions in listed entities and prohibited them from accessing capital markets. BluSmart, which relied heavily on Gensol’s EV leasing, subsequently suspended operations, citing “temporary” reasons without elaboration.
Highlights:
SEBI debarred Anmol and Puneet Jaggi from company directorships
Market access also restricted under regulatory order
BluSmart suspended operations in April 2025 amid probe
Massive Erosion in Market Value Since January 2025
The recent 5 percent gain provided only a temporary respite after severe erosion in Gensol’s stock value. The share price has plummeted by approximately 93 percent in 2025 so far, marking one of the steepest collapses among listed midcap firms this year. Out of the last 34 trading sessions, the stock has hit the lower circuit on 29 occasions.
Highlights:
Gensol shares have dropped 93% since the beginning of 2025
Stock hit lower circuit in 29 of last 34 sessions
Brief rebound seen on May 13 following resignations
