Shares of Gensol Engineering Ltd. are locked in another 5% lower circuit, having been locked in a similar lower circuit on Monday as well.

With this fall, shares of Gensol Engineering have lost 87% of their value from the all-time high of ₹1,147, which the stock had hit in June last year.

Gensol Engineering shares have been on a downward spiral since they hit their record high, more so since their credit ratings were downgraded by rating agencies ICRA and CARE.

In the last 29 trading sessions since February 21, shares of Gensol Engineering have gained only twice; once a 5% upper circuit on March 19, and the other being a 3% upmove on April 3.

The resultant move on the stock has prompted the exchanges to put the stock under the Enhanced Surveillance Measures (ESM Stage 1) framework.

Under stage 1 of the ESM framework, the stock follows a trade-for-trade mechanism with a price band of 5%. Applicable margins will be 100% from the T+2 day. In case the security is already in a 2% price band, it stays within that.

Back then, ICRA alleged that certain documents shared by the company regarding its debt servicing track record “were apparently falsified,” raising questions about its liquidity position and governance practices. CARE Ratings also downgraded the company over delayed debt servicing.

Addressing the concerns in a conversation with CNBC-TV18, Chairman and Managing Director Anmol Singh Jaggi denied any wrongdoing. He maintained there was “zero wrongdoing” and announced the formation of an independent committee to investigate the allegations.

Days after assuring the company that promoters will increase their stake in the company, promoters had to pare some stake in the open market.

Last month, Gensol Engineering approved the allotment of 4,43,934 equity shares following the conversion of warrants issued on a preferential basis to the promoter category/

The equity shares were allotted at ₹871 per share, including a premium of ₹861 per share, after receiving the balance payment of ₹28.99 crore — 75% of the issue price per warrant.

Shares of Gensol Engineering are in a 5% lower circuit at ₹147.