Gensol Engineering awaits regulatory approval to sell 2,997 EVs to Refex Green Mobility

Anmol Singh Jaggi-led Gensol Engineering is awaiting financial and regulatory approvals to proceed with the sale of 2,997 electric vehicle (EV) assets by Gensol to Refex Green Mobility Ltd.

Jaggi’s private ride-hailing venture BluSmart's fleet comprises around 8,500 EVs in Delhi NCR, Bengaluru and Mumbai.

Gensol and Refex Green had entered into a tie-up for the takeover of assets, subject to necessary regulatory and financial approvals, as well as the completion of due diligence, the beleaguered solar power engineering, procurement, and construction (EPC) company said in a stock exchange filing.

“The terms of the transaction had been mutually agreed upon, and a comprehensive evaluation is currently underway, covering financial, legal, and operational aspects,” it said.

“Contrary to speculative reports, the transaction has not yet been concluded. Until completion, the EV assets remain the property of Gensol and continue to operate on the BluSmart platform,” the statement said, adding that Gensol has been “fully cooperative in supporting this review process” by providing all required documentation and clarifications.

This comes at a time when BluSmart is seeing an exodus of top executives. BluSmart CEO Anirudh Arun, chief business officer Tushar Garg, and chief technology officer Rishabh Sood have reportedly quit from their roles.

These top-level exits come three weeks after credit rating agency ICRA downgraded Jaggi-led public listed Gensol Engineering following feedback received by ICRA from the company’s lenders about the ongoing delays in debt servicing.

“Gensol, in its latest public disclosures as well as in its recent communications with ICRA, had highlighted sizeable available liquidity to support its operations during its ongoing growth phase. In this regard, reference can be drawn to GEL’s investor call transcript dated February 13, 2025, wherein the management had highlighted total liquidity in the books of about ₹250 crore, in addition to access to working capital limits. GEL had also been sharing no-default statements with ICRA at the beginning of every month suggesting timely debt servicing. However, ICRA has now learnt that certain documents shared by GEL with ICRA, on its debt servicing track record, were apparently falsified, which raises concerns on its corporate governance practices, including its liquidity position,” the credit rating firm said.

The rating downgrade also factored in the business linkages of Gensol with its promoter group entity, Blusmart Mobility Private Limited (Blusmart), which is a loss-making entity and recently delayed on its NCD payments, which, as per ICRA, can also have an adverse impact on the financial flexibility and capital raising ability of Gensol. Delays in debt servicing by more than 15 days to the bondholders of Blusmart in February 2025, points to lapses in liquidity management within the group, said ICRA.

Jaggi’s Gensol had earlier taken a loan of ₹633 crore from state-run Power Finance Corporation for purchase of 5,000 passenger EVs and 1,000 cargo EVs. These EVs were leased to Blusmart to expand its fleet of ride-hailing cabs. Indian Renewable Energy Development Agency Ltd (IREDA), the largest lender of the renewable energy sector in India, had also sanctioned a loan of ₹267.67 crore to BluSmart Mobility for purchase of 3,000 all-electric cars.

The financial flexibility of the promoters has significantly been impacted, owing to increase in share pledge to 85.5% in February 2025 from 79.8% in September 2024, amidst continuous decline in share price of Gensol over the last few months, noted ICRA. There is a delay in equity raise and infusion plans against earlier expectations, it added.

Shares of Gensol have declined 74% in 2025. The stock fell another 5% in intraday trade on Wednesday to hit a 52-week low of ₹204.10 on the BSE.

ICRA assessed liquduity at Gensol as ‘Poor’. “The company is in a high growth phase, and with a highly working capital intensive nature of operations along with sizeable capex plans, the free cash flow (FCF) is expected to remain negative in FY26,” the rating agency said.

Moreover, the company’s scheduled repayments remain elevated ranging between ₹350 crore and ₹400 crore in the next fiscal. In order to fund this gap, Gensol is expected to remain dependent on external funding. ICRA believes that in the light of the recent events, promoter’s financial flexibility will be materially constrained.

Gensol has been working on setting up its new EV manufacturing facility in Pune for developing two-seater EV fleet cars and EV cargo. A large portion of the planned capex for developing the vehicles will be incurred in FY25 and FY26.