Gensol Engineering shares took a u-turn on May 13, and jumped 5 percent to get locked in the upper circuit at Rs 56.64 apiece. This comes after the stock crashed to get locked in the lower circuit for a 17 consecutive sessions. The rise in the stock price comes a day after the firm announced that its Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi have resigned.
In an exchange filing released in the post market hours of May 12, Gensol announced the two resignations. The Jaggi brothers cited SEBI's interim order as the reason behind their decision.
Notably, the shares of the company had been on a free fall since market regulator SEBI alleged Gensol Engineering promoters Anmol and Puneet Jaggi diverted loans meant for funding BluSmart's electric vehicle purchases for personal use. These included a luxury apartment in DLF's The Camellias in Gurugram, and high-end golf equipment worth Rs 26 lakh.
BluSmart was co-founded by Gensol Engineering promoters Anmol and Puneet in 2019.
Gensol took term loans worth Rs 978 crore from IREDA and PFC between 2021 and 2024, with Rs 664 crore taken for purchasing 6,400 EVs to be leased to BluSmart. Gensol was to provide an additional equity (margin) contribution of 20 percent, bringing the total expected deployment of approximately Rs 830 crore for the purchase of the EVs.
In an exchange filing released in February, the company said it had procured 4,704 EVs till then. Its EV supplier, Go-Auto, also confirmed that Gensol bought 4,704 EVs for Rs 568 crore.
The differential amount of Rs 262.13 crore and the actual consideration of Rs 568 crore still remain unaccounted for, SEBI said, though over a year has passed since the company availed the last tranche of the financing.
The market regulator debarred the brothers from holding any directorship post in the company and from accessing the market following which BluSmart suspended operations. "We've decided to temporarily close bookings on the BluSmart app," the firm said in an email to customers on April 17, without giving any reasons.
Also read: No relief to Gensol Engineering in SAT against SEBI order
Gensol shares have hit the lower circuit in 29 out of 34 sessions in the past three months. The stock has fallen by a whopping 93 percent in 2025 so far.
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