Gensol Clarifies Link To Alleged Hawala Operator, Shares Locked In Lower Circuit For Third Day
The company clarified that Zenith Multi Trading DMCC, a perceived hawala operator is a passive shareholder with no decision-making rights or any business involvement with the company.
Shares of Gensol Engineering Ltd. were locked in lower circuit for the third straight day on Thursday even after the company denied involvement of Zenith Multi Trading DMCC, an alleged hawala operator, in its business operations.
The company clarified that Zenith is a passive shareholder with less than 1.5% holding in Gensol. It also added that Zenith has no decision-making rights or any business involvement with the business and operational strategies in the company.
"The company would like to clarify that any developments related to Zenith will have no impact on our growth trajectory or strategic vision," it said in an exchange filing on Wednesday.
Zenith is owned by Hari Shankar Tibrewala, who according to the directorate of enforcement is a hawala operator and had partnered with the promoters of Mahadev Online Book.
The ED claims that Tibrewala's Dubai-based entities were investing the betting proceeds in the Indian stock markets through the FPI route.
Shares of the company were locked in the 5% lower circuit of Rs 829.45 apiece at 11:10 a.m. This compares to a 0.38% decline in the NSE Nifty 50. This is the third straight day of shares getting locked in lower circuit. The lower circuits were relaxed to 10% on Monday and Tuesday.
The stock has risen 83.31% in the past 12 months, even after having fallen by 26.22% in the last one month. Total traded volume so far in the day stood at 1.5 times its 30-day average. The relative strength index was at 29 indicating shares were in underbought territory.
