Gensol Engineering Shares Crashed Over 90% in 2025: From EV Player to Market Cautionary Tale

Gensol Engineering, once a quiet player in the renewable energy space, made headlines by diving into high-growth sectors like solar EPC (Engineering, Procurement and Construction) and electric vehicle manufacturing. While not widely known to the average consumer, the company attracted investor interest with bold ambitions, including a proposed 30,000 EVs-per-year production facility in Pune. The vision was grand — clean energy, cutting-edge tech, and future-focused mobility.

The Share Price Collapse: 90% Down and Still Falling

On May 9, 2025, as of 1:15 PM, Gensol’s shares hit their 52-week low of ₹56.79, a staggering drop from a high of ₹1,125 the previous year. This wasn’t a sharp, sudden plunge; it was a slow-motion crash. For 20 consecutive trading sessions, the stock has been trapped in a 5% lower circuit, a clear signal of extreme investor pessimism and exit panic.

SEBI Intervention: A Blow to Credibility

The biggest blow came when SEBI barred the company’s promoters — Anmol and Puneet Jaggi — from trading in the market. The regulatory body accused them of misusing funds raised through an IPO. Instead of deploying capital towards EV procurement, investigations allege that significant portions were diverted into luxury real estate assets.

This alleged breach of trust has severely dented the company’s reputation and raised serious concerns about corporate governance.

Credit Ratings Dive into Default Zone

Adding to the crisis, credit rating agencies ICRA and CARE downgraded Gensol’s borrowings to a 'D' rating, signalling default risk. The downgrades were not speculative. Reports cited payment delays and alleged document irregularities as reasons behind the revised assessments.

For a capital-intensive company operating in infrastructure and manufacturing, such a rating restricts access to future funding and shatters stakeholder confidence.

NSE and BSE Clamp Down Under ESM

The stock exchanges weren’t far behind. Both NSE and BSE placed Gensol under the Enhanced Surveillance Measure (ESM), a framework designed to monitor and warn about stocks showing unusual volatility, financial stress, or potential manipulation.

Being tagged under ESM is akin to a public red flag. It does not imply guilt but does signal that investors should be cautious, and many have taken heed, as evident from the relentless downward spiral in the share price.

Conclusion

Gensol Engineering’s sharp decline serves as a stark example of how market sentiment can turn swiftly when financial irregularities, regulatory scrutiny, and governance issues collide. While the company once symbolised the promise of India’s clean energy and EV revolution, it now stands as a case study in caution.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.