Refex Withdraws Proposal to Acquire 2,997 EVs from Gensol

Refex Green Mobility, a wholly-owned subsidiary of Refex Industries, has withdrawn its proposal to acquire 2,997 electric vehicles from Gensol Engineering. According to a company filing, both companies mutually decided to abandon the transaction due to "evolving commitments at both ends."

In their press statement, the companies stated, "This decision has been arrived at due to the evolving commitments at both ends, which would make it challenging to conclude the transaction within the originally envisaged timeline. The parties have therefore agreed to not move forward with the transaction at this stage."

On January 16, Refex Green Mobility had announced a strategic partnership with Gensol Engineering for the transfer of 2,997 EVs worth nearly ₹315 crore. As part of the deal, Refex was set to lease these vehicles to BluSmart, an EV ride-hailing service founded by the promoters of Gensol Engineering.

However, on March 25, Refex Green Mobility refuted reports claiming that the proposed takeover had been completed. The company clarified that "Until completion, the EV assets remain the property of Gensol and continue to operate on the BluSmart platform."

Gensol Engineering’s stock has been on a sharp decline in recent days, following multiple ratings downgrades due to concerns over delays in servicing term loan obligations. The company has also been under scrutiny over allegations of falsified debt servicing documents. While Gensol has denied any involvement in falsification, it has initiated an internal probe into the matter.

On March 28, shares of Gensol Engineering dropped 5% to close at ₹185 per share, marking the fourth consecutive session of hitting the lower circuit. Over the past month, Gensol’s stock has fallen by nearly 66%, and in the last six months, it has plummeted by 78%.

Shares of Refex Industries also ended in the red, slipping nearly 2% to close at ₹378 per share on March 28.