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Gensol Insolvency: A Noida company may get the responsibility of running 4 thousand cabs of Gensol Engineering, which is facing bankruptcy process in the loan default case. For this, there is a possibility of a 24-month agreement between both the companies.
New Delhi. You may soon see cars of Bengaluru’s cab service BlueSmart running in Delhi-NCR also. Noida-based company Signodrive Technologies Pvt intends to acquire the cars of bankrupt company Gensol Engineering Ltd. If the deal is finalized, then about 4,000 cars of Gensol will soon come to Signodrive. The company has approved this acquisition for 24 months.
The promoters of Gensol Engineering had misused the company’s funds, due to which it defaulted on its loan. Bankruptcy proceedings also started against the company in NCLT. Under this process, the insolvency resolution process started and now Signodrive has made a strong claim to acquire the cabs of the company by making the highest bid. Under the deal, Signodrive will get ownership rights of all 4,000 cabs of Gensol for 24 months. There will be a lock-in period of 18 months. This means that the company cannot back out of its deal for 18 months.
BlueSmart cars will run in Rapido
Signodrive has expressed its intention to run all Gensol’s BlueSmart cars on business to consumer concept. For this, the company can tie up with online cab booking platforms like Rapido. Let us tell you that all 4,000 cars of BlueSmart are electric. Under the deal, the operation value for the car has been kept at Rs 16,000 per month, which will be around Rs 154 crore. This means that Signodrive is expected to earn around Rs 154 crore every month from this deal.
4 thousand cars are standing since April
4 thousand electric cars included in Gensol’s fleet have been standing since April. The company’s CEO Anmol Singh Jaggi and promoter-director Puneet Singh Jaggi were banned by market regulator SEBI for misuse of funds. After this, bankruptcy process was started against the company to recover the debt. Besides, the market regulator had also barred both the officers from any kind of interference in the company. SEBI found in its investigation that both of them had bought luxury property for themselves with the company’s funds and squandered the investors’ money like water for their hobbies.
Loan default of Rs 500 crore
Gensol had received a huge loan from the EPC solar business, but the company did not repay this loan and defaulted. In this regard, EPC Solar filed a case in the Ahmedabad branch of NCLT and in June, a default case of Rs 500 crore started against Gensol. At present, the insolvency case against the company is still in process, but to repay the debt, the process of leasing 4 thousand cars included in its fleet has started. Its objective is that the company’s property does not get spoiled and the loan can be repaid by recovering it in time.
Three companies had bid
Three companies had bid along with Signodrive to take over Gensol’s fleet. In this, Signodrive had the highest bid and it also owns the e-taxi startup Evaara. Signodrive, started in the year 2018, initially tried its hand in manpower services, which used to do management work in the logistics field. The company’s CEO Gagan Chaturvedi has decided to gradually enter the field of EV and now if he gets the work of Gensol’s fleet, then it will be a big leap for the company.
How much does Signodrive earn?
CRISIL released a report on October 31 and said that the operation income of this company was around Rs 20 crore in the financial year 2025, which is expected to increase to Rs 45 to 50 crore in the current financial year. Along with this, the company has also received the rating of BB Stable from the rating agency, which shows its strong financial position. The company also has a bank facility of Rs 12 crore and its balance sheet is also considered strong. About 15 companies including Vedanta, JSW have expressed their intention to acquire Gensol’s subsidiary BlueSmart.
