Refex Green Mobility drops plans with Gensol to take over BluSmart cabs
The move by the company adds to the continuous stream of unfortunate developments at Gensol Engineering, which is facing a liquidity crunch.
Refex Green Mobility on Friday said it has abandoned its plans to takeover vehicles from Gensol Engineering, adding to the woes of the renewable energy company currently facing liquidity challenges.
According to an NSE filing, the plan was dropped due to "evolving commitments at both ends, which would make it challenging to conclude the transaction within the originally envisaged timeline."
Chennai-based Refex Industries had informed public bourses on January 16 that the firm’s subsidiary, Refex Green Mobility, will take over 2,997 electric four-wheelers from Gensol.
Under this agreement, Refex will lease these vehicles to BluSmart and also assume Gensol’s existing debt amounting to nearly Rs 315 crore, it said.
Currently, Gensol has a debt of Rs 1,146 crore against a reserve of Rs 589 crore. To fill this gap, the company’s board approved a Rs 600 crore fundraising initiative on March 13. This step, along with the sale of vehicles and the sale of a subsidiary, was expected to strengthen the firm’s financial position.
Anmol Singh Jaggi and Puneet Singh Jaggi, along with Punit Goyal, are the founders of EV-ride hailing app BluSmart, which leased vehicles from Gensol. Anmol is the Chairman and Managing Director of Gensol, while Puneet is a Director at the firm.
Besides the troubles at Gensol, BluSmart is also struggling amidst funding troubles at the EV ride-hailing firm. The company is deploying 300 electric cabs on rival US-based Uber’s platform as part of an experiment, a source had told YourStory.
Earlier this month, there were reports of Uber acquiring BluSmart, but Anmol Singh Jaggi has since denied acquisition talks.
Edited by Suman Singh