Gensol Engineering shares hit back-to-back lower circuits; here's why

Gensol Engineering shares hit 5 per cent lower circuit on April 21, 2025, at ₹111.65 per share on BSE. The southward movement in the shares came after reports suggested the government is considering initiating a probe by the Serious Fraud Investigation Office (SFIO) against Gensol Engineering and its promoters.
Around 12:11 PM, Gensol Engineering share price was down 4.98 per cent at ₹111.65 per share on BSE. In comparison, the BSE Sensex was up 1.17 per cent at 79,474.16. The market capitalisation of the company stood at ₹424.3 crore. The 52-week high of the stock was at ₹1,125.75 per share and the 52-week low was at ₹111.65 per share.
Gensol Engineering shares fell for the eighth straight session after the company's promoters were alleged of getting involved in fraudulent fund diversification. When Gensol Engineering made its public market debut through a small and medium enterprises (SME) initial public offering (IPO) in September 2019, its promoters held a commanding 96 per cent stake. Now, that figure has shrunk to a 'negligible' fraction.
According to an order by the Securities and Exchange Board of India (Sebi), this steep decline was not organic but allegedly orchestrated through a network of false disclosures, sham transactions, and diverted funds, which effectively led to a near-total promoter exit, even as unsuspecting investors were left holding the bag.
Meanwhile, the Ministry of Corporate Affairs (MCA) is conducting due diligence in the alleged fund diversion case involving Gensol Engineering, through the offices of the Director General (DG) and the Registrar of Companies (RoC), as per Business Standard sources.
The company's ₹18 crore IPO had seen modest demand, having been subscribed 1.3 times with total bids of ₹23 crore. After listing, the promoters' holding dropped to 70.72 per cent. In July 2023, Gensol — in the business of providing solar consulting services, and engineering, procurement and construction (EPC) services — shifted to the mainboard, gaining access to a broader and more liquid investor base.
In one year, shares of Gensol Engineering lost 87 per cent as compared to Sensex's rise of 6.6 per cent.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Mint

18 minutes ago

• Mint

Quant Mutual Fund-owned realty stock inches higher despite stock market crash; here's why

Nishant Kumar Updated 23 Jun 2025, 02:12 PM IST Realty stock Man Infraconstruction rose over a per cent in intraday trade on June 23 in a weak market. (Image: Pexel): Quant Mutual Fund-owned realty stock Man Infraconstruction rose by over a per cent in intraday trade on the BSE on Monday, June 23, in an otherwise weak market. The small-cap stock opened at ₹ 160.55 against its previous close of ₹ 160.55 and traded over a per cent higher at ₹ 162.30 around 2:10 PM. (This is a developing story. Please check back for fresh updates.)

Time of India

35 minutes ago

• Time of India

Sensex, Nifty take a hit, but 5 reasons why smallcaps, midcaps remain bulletproof

1. Stock-Specific is the New Market Mood Live Events 2. Earnings Optimism 3. No FII, No Fear 4. A Tsunami of Domestic Liquidity 5. War Overhang May Be Short-lived Investment Strategy Intact (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel While the Sensex tanked over 900 points and the Nifty slid below the psychological 25,000 mark in Monday's trade, it felt like just another calm day in paradise for smallcap and midcap investors. The bombs may be flying over the Middle East, but in Dalal Street's broader market, it's stock-specific a day marked by escalating geopolitical drama, following the US strike on Iran's nuclear facilities, retail portfolios hardly flinched. In fact, many BSE Smallcap index defied gravity, rising 0.3% as stocks like Ideaforge, Apollo Micro Systems and Northern Arc Capital surged over 10%. The Nifty Midcap 100 also climbed 0.34%, even as the frontline Nifty 500 closed 0.26% what's insulating the small and mid-tier soldiers of the market when the generals are bleeding?'The market structure has changed over the last 2-3 months,' said Sunny Agrawal, Head of Fundamental Research at SBI Securities. 'It's become stock-specific. Investors are laser-focused on earnings growth potential or fundamental shifts in business. In some cases, industry tailwinds like in defence, are driving action.'Also Read | Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks? According to Agarwal, several midcap and smallcap names are poised to deliver a 25-30% CAGR in earnings over the next two years. Agarwal remains bullish on NBFCs and consumption-driven themes, which are more dependent on India's domestic story than oil flows through Institutional Investors (FIIs) have largely stayed away from the midcap and smallcap space. The result? No selling pressure. In a war-induced panic selloff, that's the moat retail and HNIs are not just retail. Family offices and domestic institutions are increasingly parking money in the broader market. "Family office pools are growing stronger, and midcaps/smallcaps are no longer just HNIs and retail investors," said Agarwal. "MF inflows are healthy too and going into better-quality names."Also Read | Why stock market is falling today? Key factors behind 900-point Sensex crash, Nifty below 24,850 Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services , doesn't expect a prolonged selloff. 'Even though the US bombing of Iran's nuclear facilities has worsened the West Asia crisis, market reaction remains measured. Crude prices, US futures, and the absence of panic in Asian markets indicate restraint,' he said.'The closure of the Hormuz Strait, while always a threat, has never actually happened. Any serious escalation will hurt Iran and its ally China more than the US.'The market construct, he added, continues to support a 'buy on dips' the geopolitical turbulence, both experts maintain their constructive outlook. Agarwal expects "the war overhang will get 2-3 days over" and remains bullish on NBFC and consumption themes. "The market is a buy on dip structure," he echoed this sentiment: "The market construct continues to favour a 'buy on dips' strategy," suggesting that long-term investors view current volatility as an opportunity rather than a systemic threat.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Economic Times

an hour ago

• Economic Times

Sensex, Nifty take a hit, but 5 reasons why smallcaps, midcaps remain bulletproof

While the Sensex tanked over 900 points and the Nifty slid below the psychological 25,000 mark in Monday's trade, it felt like just another calm day in paradise for smallcap and midcap investors. The bombs may be flying over the Middle East, but in Dalal Street's broader market, it's stock-specific sunshine. ADVERTISEMENT In a day marked by escalating geopolitical drama, following the US strike on Iran's nuclear facilities, retail portfolios hardly flinched. In fact, many smiled. The BSE Smallcap index defied gravity, rising 0.3% as stocks like Ideaforge, Apollo Micro Systems and Northern Arc Capital surged over 10%. The Nifty Midcap 100 also climbed 0.34%, even as the frontline Nifty 500 closed 0.26% lower. So what's insulating the small and mid-tier soldiers of the market when the generals are bleeding?'The market structure has changed over the last 2-3 months,' said Sunny Agrawal, Head of Fundamental Research at SBI Securities. 'It's become stock-specific. Investors are laser-focused on earnings growth potential or fundamental shifts in business. In some cases, industry tailwinds like in defence, are driving action.' Also Read | Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks? ADVERTISEMENT According to Agarwal, several midcap and smallcap names are poised to deliver a 25-30% CAGR in earnings over the next two years. Agarwal remains bullish on NBFCs and consumption-driven themes, which are more dependent on India's domestic story than oil flows through Hormuz. Foreign Institutional Investors (FIIs) have largely stayed away from the midcap and smallcap space. The result? No selling pressure. In a war-induced panic selloff, that's the moat retail and HNIs are enjoying. ADVERTISEMENT It's not just retail. Family offices and domestic institutions are increasingly parking money in the broader market. "Family office pools are growing stronger, and midcaps/smallcaps are no longer just HNIs and retail investors," said Agarwal. "MF inflows are healthy too and going into better-quality names." Also Read | Why stock market is falling today? Key factors behind 900-point Sensex crash, Nifty below 24,850 ADVERTISEMENT Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, doesn't expect a prolonged selloff. 'Even though the US bombing of Iran's nuclear facilities has worsened the West Asia crisis, market reaction remains measured. Crude prices, US futures, and the absence of panic in Asian markets indicate restraint,' he said.'The closure of the Hormuz Strait, while always a threat, has never actually happened. Any serious escalation will hurt Iran and its ally China more than the US.' ADVERTISEMENT The market construct, he added, continues to support a 'buy on dips' the geopolitical turbulence, both experts maintain their constructive outlook. Agarwal expects "the war overhang will get 2-3 days over" and remains bullish on NBFC and consumption themes. "The market is a buy on dip structure," he echoed this sentiment: "The market construct continues to favour a 'buy on dips' strategy," suggesting that long-term investors view current volatility as an opportunity rather than a systemic threat. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)