Retail Rush Turns Risky: Over 1 Lakh Investors Trapped in Gensol Engineering Shares

In the March 2025 quarter, retail investors made a significant move in Gensol Engineering, a company now mired in controversy. As per the latest shareholding data, the number of retail investors surged by 13,443 to 1,04,458, up from 91,015 in the December 2024 quarter. These investors, typically defined as those holding equity worth up to ₹2 lakh, collectively acquired 28.88 lakh shares during this period.

Their cumulative stake increased from 23.44% to 30.68%, reflecting growing retail participation despite rising concerns over the company’s internal affairs.

Promoter Shareholding Drops Sharply

While retail participation rose, Gensol Engineering’s promoters were heading in the opposite direction. Promoter stake saw a steep decline, dropping from 62.65% in the December quarter to 35.87% by the end of March 2025.

Individually, Anmol Singh Jaggi reduced his holding from 21.20% to 12.32%, and Puneet Singh Jaggi from 18.39% to 10.47%. The decline in promoter confidence raised further questions about the company’s stability and governance practices.

High-Net-Worth Individuals Trim Presence, But Holding Rises

Interestingly, while the number of high-net-worth individuals (HNIs) in the shareholder list fell from 111 to 48 quarter-on-quarter, their total holding rose from 7.10% to 10.15% by March 2025. This indicates that a smaller group of HNIs increased their exposure even as others exited amid uncertainty.

The diverging moves between retail investors and institutional/wealthy investors continue to highlight the risk gap in access to information and exit opportunities.

Read More: Gensol Engineering Share Price in Focus Amidst ED Raids: Investors Worry as Stock Crashes 92% From Its Peak. 

Stock Plunges Amid ED Raids and Lower Circuit Freeze

Gensol Engineering shares have witnessed relentless selling pressure since late February. On May 2, the stock hit yet another 5% lower circuit and dropped to a fresh 52-week low, extending its fall in back-to-back sessions with only sell orders visible on the exchange.

Adding to investor woes, the company confirmed that the Directorate of Enforcement conducted search operations at its offices in Gurgaon and Ahmedabad, seizing documents and electronic devices. Gensol stated that the financial impact of these actions is yet to be determined.

Conclusion

The sharp increase in retail investor participation in Gensol Engineering during a period of crisis has left many trapped in a stock that continues to decline with limited exit options. With promoter stake declining and investigations underway, the future remains uncertain for over a lakh retail shareholders.

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