Gensol shares fall 5% after SEBI bars promoters from securities market
By : Sandhya
Following allegations by the Securities and Exchange Board of India (SEBI) that its proprietors had embezzled company cash, shares of Gensol Engineering Ltd. dropped as much as 5%, reaching an annual low on Wednesday. The company's stock was down 4.99%, or ₹6.50, at 12:45 p.m. on the Bombay Stock Exchange (BSE), reaching ₹123.65. The same sum, which is also the 52-week low, was the intraday low thus far.
In its ruling, SEBI stated that the company had obtained ₹975 crore in loans from organizations like Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) to buy electric vehicles (EVs) for BluSmart, its ride-hailing business.
The ruling said that just a portion of the funds were utilized for that purpose, with the remainder being diverted for unrelated personal costs including investing in other ventures and purchasing a posh condominium in Gurugram. Additionally, according to SEBI's ruling, Ashneer Grover's IT start-up, Third Unicorn Pvt. Ltd., received ₹50 lakh in investment.