In accordance with reports, investment company Eversource Capital has made an offer to acquire BluSmart, an electric ride-hailing platform currently facing a governance and financial crisis caused by its co-founders’ association with the Gensol Engineering scandal.
For approximately Rs 850–1000 crore, the investment company has made a non-binding offer to acquire the company.
While Eversource has not officially declared the bid, the rumors indicate that the Jaggi brothers will likely be requested to step down from the board of the company in the potential takeover.
BluSmart, under close observation ever since regulatory action against its owners, Anmol Singh Jaggi and Puneet Singh Jaggi, would witness a radical change with the proposed sale, still awaiting board approval and due diligence.
Also, both of them are promoters of Gensol Engineering Ltd., a listed company that is currently under an investigation by the Securities and Exchange Board of India (SEBI) for alleged securities fraud and diversion of funds.
As per reports, Eversource is going to add BluSmart to its existing fleet of electric vehicles, including Lithium Urban Technologies already.
According to reports, the firm is ready to invest an additional $100 million post-merger in addition to growing the combined platform. BluSmart is likely to be valued at a huge discount during the proposed buyout, at around 60% lower than its earlier valuation of $300 million (approx. Rs 2,560 crore).
Operations of BluSmart have also suffered negatively. There have been resignations of some senior executives, suspension of ride bookings, and extension of client wallet refund durations to as much as 90 days.