The stock of Gensol Engineering Limited, the parent company of EV maker BluSmart, crashed another 5 per cent on Thursday, taking the total fall to nearly 90 per cent from the 52-week high of Rs 1,124.90 after a massive fraud was exposed by the capital markets regulator.
The steep decline comes after the Securities and Exchange Board of India (SEBI) passed an interim order exposing serious financial irregularities and banning the company’s promoters from taking part in any leadership roles.
Gensol shares were trading at Rs 116.54, locked in the lower circuit on Thursday on the National Stock Exchange (NSE).
The stock has been under heavy selling pressure ever since SEBI alleged large-scale fund diversion by Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.
The regulator has barred the Jaggi brothers from accessing the securities market or holding any key managerial positions in listed companies.
The SEBI probe found that promoter Anmol Singh Jaggi had allegedly transferred company funds to family members and for personal use.
According to the order, Jaggi sent Rs 6.2 crore to his mother and Rs 2.98 crore to his wife.
He also spent large amounts of company money on luxury items, including Rs 26 lakh on a golf set, Rs 17 lakh on shopping at Titan, and over Rs 10 lakh on spa sessions.
Around Rs 3 lakh was spent on personal travel through MakeMyTrip. The order also mentioned a transaction of Rs 50 lakh to BharatPe’s Co-founder Ashneer Grover’s startup Third Unicorn.
Jaggi allegedly diverted Rs 25.76 crore from BluSmart, using part of it for foreign currency, investments, credit card payments, and other lavish expenditures.
Adding to the turmoil, BluSmart has reportedly halted ride bookings and is planning to become a fleet partner for Uber.
According to media reports, the company has begun rebranding its electric cabs as Uber Green in Bengaluru. This move comes after the Jaggi brothers resigned from their leadership roles following the SEBI crackdown.
According to a ground report by NDTV Profit, the rebranding process has already started. At the Bengaluru airport, some BluSmart cabs have begun receiving Uber Green livery.
“A taxi driver at the location confirmed the transition and even shared a photo of a cab being repainted,” the report mentioned.
