The Gensol Engineering Saga: From Solar Dreams To a Financial Fraud [BluSmart Story]

Introduction

You must have heard about Gensol Engineering. It’s a story that’s grabbed headlines for all the wrong reasons lately. As an Indian investor myself, I’ve seen companies rise and fall, but Gensol’s journey feels like a rollercoaster that crashed hard. In March’2025, I wrote an article on Gensol as its price was down by -70% that time. But even then, I had not though that SEBI would uncover a scam in the financials of this company. I must say, I’m a bit surprised. The founders (Jaggi Brothers) seemed like a decent entrepreneur. But i stand corrected.

Allow me to tell you the Gensol story step by step. We’ll see how this company being a promising solar energy company soared to great heights, only to plummet due to debt, mismanagement, and shocking fraud allegations.

Ready? Let’s dive in.

Gensol Beginning

Back in 2012, two brothers, Anmol and Puneet Singh Jaggi, started Gensol Engineering in Ahmedabad.

Their goal was simple: tap into India’s growing need for renewable energy. Solar power was picking up, and the government was pushing green initiatives. Gensol focused on solar advisory, engineering, and maintenance services. It was a smart move. India’s sunny climate and ambitious renewable energy targets made it a ripe market.

By 2019, Gensol was ready to go public. They launched an SME IPO on the BSE, raising Rs.17.93 crore at Rs. 83 per share. For a small company, this was a big step.

Investors saw potential in Gensol’s niche. After all, who doesn’t want to back a company that’s part of India’s clean energy future?

The IPO gave Gensol the capital to dream bigger, and they didn’t waste time.

The Growth Years: Riding the Renewable Wave

Post-IPO, Gensol spread its wings. They didn’t just stick to solar.

They ventured into wind energy advisory, energy storage, and even electric vehicles (EV). This diversification made them stand out.

By 2023, Gensol was no longer a small player.

Their financials looked impressive. For example, in the first quarter of 2024, their net sales jumped 119% to Rs. 398.82 crore. Profits? Up 130% to Rs. 24.34 crore.

Numbers like these can draw attentions of even experienced and big investor.

The stock market loved it. By October 2022, Gensol’s stock hit an all-time high of Rs.2,300. Imagine investing Rs.10,000 in 2019 and watching it grow into a lakh or more.

Gensol’s order book was worth over Rs. 7,000 crore, and they were winning contracts left and right.

The founder (Jaggi brothers) also co-founded BluSmart, an EV ride-hailing service, which added to their reputation as forward-thinkers.

Everything seemed perfect. But as always, sometimes things that shine too bright don’t last long. It was a repeat episode again.

Cracks Appear: Debt and Downgrades

Fast forward to March 2025, and the fairy tale started unraveling. Gensol’s stock, once a darling of the market, began to wobble. Why? The cause was Debt.

The company had taken on significant loans to fuel its growth. Expansion sounds great, but borrowing too much is like buying a fancy car on EMI without having money in the bank to pay even the EMIs.

Gensol’s debt became a problem when they couldn’t service debt repayments on time.

On March 3, 2025, CARE Ratings dropped a bombshell. They downgraded Gensol’s bank facilities worth Rs. 716 crore to CARE D, it is a rating that screams default risk.

ICRA followed suit, downgrading Rs.2,050 crore of loans to ICRA D. The reason? Delays in loan repayments and poor liquidity.

Investors panicked. The stock crashed 40% in just three days. By early March, it was at Rs.517.40, and by April 1, it slid further to Rs.175.75. That’s a 66% drop in a month.

Gensol tried to calm the storm. They admitted to a “short-term liquidity mismatch” and promised to reduce debt. But the damage was done.

Rumors of falsified documents to hide their financial mess didn’t help.

As someone who’s seen market cycles, I couldn’t help but wonder: how did a company with such promise miss the basics of financial discipline?

The SEBI Bombshell – Jaggi’s Caught in Fraud

Just when you thought things couldn’t get worse, SEBI stepped in.

On April 15, 2025, the market regulator issued an interim order that shook everyone. They accused Anmol and Puneet Singh Jaggi of treating Gensol like their personal ATM.

According to SEBI, the brothers diverted company funds for lavish personal expenses.

• We’re talking a Rs.26 lakh golf set, and
• A luxury apartment at DLF Camellias in Gurgaon woth Rs.43 Crores.

That’s the kind of spending that makes you blink twice.

SEBI didn’t hold back. They called it a “complete breakdown” of corporate governance.

The Jaggi brothers were barred from the securities market and removed from Gensol’s management. A forensic audit was ordered, and a planned stock split was put on hold.

The stock, already battered, sank further. By April18, 2025, it was at Rs. 123.65, down 91% from its peak.

For investors who rode the Rs. 2,300 high, this was very deep and painful punch.

BluSmart’s Collateral Damage

The fraud allegations didn’t just hurt Gensol. They dragged BluSmart into the mess.

BluSmart, the EV cab service co-founded by the Jaggi brothers, was a darling of urban commuters in Delhi-NCR, Bengaluru, and Mumbai. But SEBI’s order hit them hard too.

Investors lost confidence, and a planned Rs.415 crore fundraising fell through.

By April 2025, BluSmart shut down operations.

Users couldn’t book rides, and the app sent out a notice about “temporary closure.” They promised refunds within 90 days if services didn’t resume.

Imagine being a regular BluSmart user, relying on their cabs for your daily commute, only to find the app dead.

At Delhi Airport, passengers were stranded, and the airport had to issue an advisory about BluSmart’s suspension.

It’s a clean reminder of how one company’s missteps can ripple outward, affecting customers and employees.

BluSmart’s monthly spend of Rs.20 crore to keep operations running didn’t help, especially with no new funds coming in.

What Went Wrong? A Deeper Look

So, how did Gensol go from a market star to a cautionary tale?

• First, their aggressive expansion came at a cost. Borrowing heavily to grow is risky if cash flows don’t keep up. Gensol’s debt piled up, and their liquidity dried out.
• Second, corporate governance was a weak link. The Jaggi brothers’ alleged misuse of funds shows a lack of accountability. Using company money for personal luxury isn’t just unethical, it’s a betrayal of shareholders’ trust.

Market experts have weighed in.

Tarun Singh from Highbrow Securities pointed out that startups often operate in a “regulatory grey area” with blurry lines between personal and company finances.

But Gensol wasn’t a scrappy startup anymore. It was a listed company with thousands of investors. Shouldn’t there have been stricter checks?

SEBI’s findings suggest a culture of recklessness that went unchecked for too long.

What is the lesson for we retail investors?

We love stories of growth, companies that promise to change the future.

Gensol tapped into that with its renewable energy and EV dreams. But this saga teaches us to look beyond the hype. Strong financials are great, but debt levels, cash flow, and governance matter just as much.

A company’s leadership sets the tone. If the founders treat the business like their personal piggy bank, no amount of revenue growth can save it.

I’ve learned to ask tough questions before investing.

• What’s the company’s debt-to-equity ratio?
• Are they transparent about their financials?
• Do the promoters have a track record of integrity?

These aren’t glamorous questions, but they can save you from a 91% stock crash.

Gensol’s fall is a reminder that even “multibagger” stocks can turn into nightmares if the fundamentals aren’t solid.

What’s Next for Gensol?

Gensol has promised to cooperate with SEBI’s investigation.

They’ve committed to providing full access to records for the audit. But rebuilding trust won’t be easy. The stock is at Rs.1117 levels, and investor confidence is shattered.

BluSmart’s closure adds to the gloom.

The Jaggi brothers are out of the picture for now, but the company’s future hangs in the balance.

Can new leadership turn things around? Or is this the end of Gensol’s story?

For investors still holding the stock, it’s a tough call. Some might hope for a recovery, but the risks are high. I only can hope that there are no shareholder’s who went all out in Gensol’s stocks. If they had, it’s will not be a sober ending, I think.

Others may cut their losses and move on. Either way, the market won’t forget this episode anytime soon.

People generally have short memories, but when it comes to bad governance in listed companies, investors tend to carry a very long memory.

Conclusion

Writing about Gensol feels like narrating a movie with a sad ending.

It started with promise, two brothers building a company to power India’s green future.

But ambition outpaced discipline, and now we’re left with a stock down 91%, a shuttered cab service, and a lesson in what not to do.

For investors, it’s a wake-up call. We love backing homegrown companies, but we need to be smart about it. What best we can do is to keep our spead into multiple companies. As our investment portfolio becomes bigger, it diversification becomes even more crucial.

Either you are Warren Buffett or you better keep your money diversified.

What do you think about Gensol’s fall? Have you been burned by a stock crash before? Please drop your views in the comments section below.