BluSmart not for sale; its total debt at all-time low: Anmol Jaggi

Over the past fortnight, BSE-listed solar project builder Gensol Engineering has faced a series of allegations from rating agencies regarding delayed debt payments, document falsification, and a poor liquidity position. This has also impacted BluSmart, the electric ride-hailing startup with promoter cross-holdings in Gensol. ANMOL JAGGI, founder of Gensol Group and co-founder of BluSmart Mobility, denies any rumours of selling his prized business. In an exclusive interview with Shreya Jai in New Delhi, Jaggi elaborates on financing plans, the issues under investigation, and the way forward. Edited excerpts:

 

Gensol has faced rating downgrades, and there are allegations of falsifying documents. What is the company doing? 

We had a working capital or liquidity mismatch in February this year, and during that time, a few of our debt obligations were not serviced on time. Because of that, CARE and Icra (the rating agencies) downgraded our rating to ‘D’. We are not a non-performing asset, which occurs if there is a delay of 90 days. Any overdue debt is less than 30 days due. However, according to the rating agency, even if you have not repaid a debt of one rupee for one hour, the company has to be D-rated.

 

There is also an allegation of document falsification. We are forming a committee of experts, comprising a senior law firm and one of the Big Four, to look into the matter. They will present their findings to the board, which will take necessary action accordingly.

 

The management has worked extremely hard to build our credentials. Regarding the falsification of documents, neither my brother nor I, nor anyone from the senior leadership team, was aware of it. The investigation findings will provide a clearer picture.

 

Right now, the focus is on running the business as usual. All our projects are on track.

 

What about the concerns regarding delayed debt repayment? What is the status of equity infusion? 

The amount is small, in the early two-digit range. It will not continue for long, and we will resolve it soon. Regarding equity infusion, we have already announced a ₹600 crore equity raise, of which ₹400 crore will be through foreign currency convertible bonds and the remaining through promoter warrants. This should conclude by May or June, as there are regulatory proceedings to follow. In just seven to eight days after the crisis broke, we were able to raise this amount. We have already initiated the regulatory process by issuing the extraordinary general meeting (EGM) notice. After the EGM, we can proceed with the promoter warrants.

 

The rating agencies have also pointed out a mismatch between Gensol's liquidity position and its order book size. How is this gap being bridged? 

We are taking two steps. First is the ₹600 crore fundraise, which I covered earlier. Second, we are divesting ₹665 crore worth of assets, including selling a subsidiary company for ₹350 crore and transferring the electric vehicle (EV) cars we own for about ₹315 crore. This will lead to a total reduction of ₹665 crore.

 

Currently, our debt stands at ₹1,146 crore. The transfer of our EV cars for ₹315 crore will bring it down to roughly ₹830 crore. With around ₹600 crore in reserves and the subsidiary sale of ₹350 crore, our net worth will increase by about ₹950 crore. Our net worth will rise to ₹1,500 crore, while our debt will reduce to ₹830 crore. These transactions will substantially lower our debt-equity ratio to 0.5:1.

 

BluSmart is also under scrutiny due to promoters’ cross-holdings. What is happening there? 

Both are independent companies with separate boards and audit committees. Gensol had sold cars to BluSmart, but that business has now been sold to Refex Energy. In the current $50 million (₹425 crore) funding round, promoters have also invested. This cross-holding has been disclosed from Day One.

 

Out of BluSmart’s 8,500 cars, 5,000 were leased from Gensol, and this has always been disclosed. All our investors in BluSmart are aware of the common promoters. There has been no pressure from any existing investor. Our key investor, bp, is also participating in the current funding round.

 

Is BluSmart on sale to a competitor in the ride-hailing market? 

No. A strong no. This is a complete denial. In all previous and current rounds, the family has invested significant money. We are committed to running the business; we are substantial owners. Why would we give away such a beautiful business that we have built? We want to own it forever.

 

However, the Dubai business has been shut down, and non-convertible debenture (NCD) payments were delayed. Are expansion plans derailed? 

The delay was only for a few days, and we have already cleared it. There were subsequent NCD repayments, which we made on time. Now, we have raised a substantial portion of our current ₹425 crore round and expect to close it by the end of April.

 

In BluSmart Mobility, total debt is now at an all-time low. We initially raised ₹980 crore in debt and have repaid over ₹700 crore. My next major payment is due in November 2025. Now that we have raised funds, we have ample liquidity to run the business.

 

For now, we will continue focusing on India. We launched our Dubai services as a pilot last year with a small fleet of fewer than 50 cars. Having learned from the pilot, we have consciously chosen to focus entirely on the Indian market. We have made the strategic decision to discontinue our Dubai operations from April 2025.

 

BluSmart is already operating at a run rate of about ₹70 crore per month and is growing rapidly. We expect revenue growth of at least 40-50 per cent this year.

 

What is the plan for Gensol going forward? 

At Gensol, the capital raise is in progress, and execution is on track. Our engineering, procurement and construction business has a current order book of nearly 2 gigawatt, which is strong and healthy. Compared to 2023-24, we are already delivering over 40 per cent growth in 2024-25, and we expect a similar trajectory in 2025-26. The focus remains purely on execution.

 

One lesson we’ve learned from this episode is that we should have raised equity slightly earlier.