Gensol Share Price Locked in 5% Lower Circuit: Dropped 88% From its June 2024 High

On April 9, 2025, Gensol Engineering Shares have locked in 5% lower circuit at 140.20. This follows a previous 5% lower circuit on Monday, April 8, 2025. As a result of this fall, Gensol Engineering shares has now lost 88% of its value from its peak of ₹1,147, which occurred in June of last year.

ICRA and CARE Downgraded Credit Ratings

The company’s shares have been on a downward trajectory since reaching their all-time high, especially after rating agencies ICRA and CARE downgraded its credit ratings. In the 29 trading sessions since February 21, Gensol Engineering’s shares have only risen twice: once with a 5% upper circuit on March 19 and again with a 3% increase on April 3.

Gensol Engineering Shares Under ESM Stage 1

This decline has led to the stock being placed under the Enhanced Surveillance Measures (ESM Stage 1) framework by the exchanges.

Under Stage 1 of the ESM framework, the stock is subject to a trade-for-trade mechanism with a 5% price band, and a 100% margin is required starting from T+2 day. If the stock is already within a 2% price band, it will remain within that range.

Previously, ICRA claimed that certain documents provided by the company regarding its debt servicing history “appeared to be falsified,” raising concerns about its liquidity and governance practices. CARE Ratings also downgraded the company due to delayed debt servicing.

Management Rejected the Claims

In response to these concerns, Chairman and Managing Director Anmol Singh Jaggi denied any wrongdoing in an interview with CNBC-TV18. He asserted that there was “zero wrongdoing” and announced the formation of an independent committee to investigate the allegations.

Despite assuring the promoters that they would increase their stake in the company, they were forced to reduce their holdings in the open market.

Last month, Gensol Engineering approved the allotment of 4,43,934 equity shares following the conversion of warrants issued on a preferential basis to the promoter category.

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