Gensol Engineering, the company’s stock has plunged over 90% in the past six months. This collapse follows allegations of management fraud, misuse of funds, and a sharp credit rating downgrade by agencies in March 2025.

When the credit downgrade hit in March, the stock tumbled by 40% within just four trading days, sending shockwaves across the investor community. Many feared it was the beginning of a larger unraveling—and it seems those fears were not unfounded.

Now, the Q4 FY25 shareholding pattern has added a new twist to the saga.

Surprisingly, Foreign Institutional Investors (FIIs) have increased their stake significantly to 4.88%, up from just 0.63% in the previous quarter. Domestic Institutional Investors (DIIs), who previously held no stake, have also entered with 0.14%.

However, it is the retail investors—the public—who have again borne the brunt. Public shareholding has surged to 57.75%, up from 35.54%, suggesting that thousands have bought into the falling stock without fully understanding the underlying risks. This often-seen pattern reflects the speculative behavior of retail investors during sharp declines.

In a telling sign of loss of confidence, promoters have slashed their stake drastically—from 62.66% down to just 35.88% in one quarter. This selloff raises serious questions about the company's internal governance and the road ahead.

Currently, 1,07,443 shareholders are trapped in what has become one of the most closely-watched collapses on the Indian stock markets this year.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice. The content reflects publicly available information and the author's personal interpretation.