Refex Green Mobility and Gensol Engg Call Off EV Asset Takeover Deal
The decision comes after constructive discussions between the two companies, with both citing evolving commitments and challenges in adhering to the originally envisaged timeline as key factors.
In a significant development, Refex Green Mobility Ltd (RGML), a subsidiary of Chennai-based Refex Industries Ltd, and Gensol Engineering Ltd have mutually decided to abandon their proposed transaction involving the takeover of 2,997 electric vehicles. The announcement, made today, marks the end of a deal that had been closely watched by stakeholders in the green mobility and renewable energy industries.
The decision comes after constructive discussions between the two companies, with both citing evolving commitments and challenges in adhering to the originally envisaged timeline as key factors. "RGML, after due consideration, has mutually decided with Gensol Engineering Ltd not to proceed with the proposed transaction," RGML stated in an announcement to the stock exchange. "The parties have therefore agreed to not move forward with the transaction at this stage," it said.
This move halts a collaboration that had promised to bolster RGML’s EV fleet and support Gensol’s efforts to restructure its operations amid financial pressures. The companies expressed appreciation for their collaborative engagement, with RGML noting, "We wish to place on record our appreciation for the collaborative engagement with Gensol Engineering Limited." Both reaffirmed their commitment to responsible operations and long-term value creation, signaling that this decision does not reflect a breakdown in their relationship but rather a strategic pivot.
Refex Green Mobility and Gensol Engineering have shared a history of aligning interests in the EV and sustainability space. Earlier this year, the two companies had entered into an in-principle agreement for the takeover of the 2,997 EV assets, which were part of Gensol’s fleet operating on the BluSmart platform, a ride-hailing service co-founded by Gensol promoter Anmol Singh Jaggi.
The deal, announced in January, was initially seen as a strategic partnership, with RGML set to acquire the vehicles and lease them back to BluSmart, taking over Gensol’s existing loan of approximately ₹315 crore in the process. This arrangement was part of Gensol’s broader efforts to reduce its debt burden, which had escalated following credit rating downgrades by agencies such as ICRA and CARE in early March.
The collaboration built on prior interactions between the two firms, as both have been active players in India’s renewable energy and green mobility ecosystems. Refex Industries, established in 2002, has evolved from its roots in refrigerant gases and ash handling to become a leader in sustainable solutions, with RGML spearheading its foray into electric mobility. Gensol, founded in 2012 and headquartered in Ahmedabad, has made its mark in solar power engineering, procurement, and construction (EPC) services, while also venturing into EV financing and manufacturing. Their shared focus on sustainability had positioned the proposed takeover as a natural extension of their past engagements.
As the EV market in India grows, driven by government incentives and rising demand for clean energy solutions, the paths of RGML and Gensol may yet converge again. For now, their mutual decision to step back from the transaction reflects a pragmatic approach to an industry in flux, with both companies emphasizing their dedication to stakeholders and sustainable progress. "We appreciate the continued support and interest of all stakeholders," RGML concluded, leaving the door open for future collaborations in the dynamic world of green technology.
