Gensol Engineering shares are witnessing a huge decline. The company has told the stock exchange that after the Enforcement Directorate (ED) searched its offices in gurgaon and ahmedabad on april 27, the shares fell sharply by 5 percent on Tuesday. The company's shares are under heavy pressure and there is a huge sell-off, due to which its price has come down to a 51-week low of 81.36.
Gensol shares are seeing a decline of 50 percent in just one month and a decline of 90 percent in about six months. That is, about 90 percent of the investors' capital has been lost from the record high. On Monday, Gensol said that the ED raided its office premises and seized several documents, electronic devices and financial records. The company also told the stock exchange that the full details of its financial impact after the ED action are not yet known.
Gensol shares fall sharply
It is worth noting that earlier this month, SEBI had increased surveillance on Gensol Engineering, raising its concern over the company's activities. On april 15, several actions were taken by SEBI against Gensol and the company was accused of spending money taken for business purposes on personal luxury items.
After SEBI's action, two important financial institutions Power Finance Corporation (PFC) and indian Renewable Energy Development Agency (IREDA) have filed a complaint against Gensol. PFC has alleged that Gensol has not paid some of its loans, while the Economic Offenses Wing (EOW) has made serious allegations that Gensol submitted fake documents to secure funding. IREDA said that its Examination and Risk Committee is investigating the entire matter very closely and as soon as it is completed, steps will be taken for recovery and other actions.
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