Refex Green Mobility withdraws proposed asset takeover from Gensol Engineering amid market scrutiny

Refex Green Mobility Limited has officially announced that it will no longer proceed with the proposed asset takeover of 2,997 electric vehicles from Gensol Engineering Limited. The decision, reached after extensive deliberations, was driven by evolving commitments on both sides, making it unfeasible to complete the transaction within the originally envisioned timeframe.

This announcement marks a significant shift in the strategic plans of both Refex Green Mobility and Gensol Engineering Limited, as the acquisition had been positioned as a critical move in scaling EV fleet operations. However, with both parties acknowledging challenges in aligning their evolving priorities, they have mutually agreed to halt the deal.

Stock Market Reaction and Investor Sentiment

The termination of this agreement has led to increased scrutiny of the stock performance of both Refex Industries Limited, the parent company of Refex Green Mobility, and Gensol Engineering Limited.

As of March 28, 2025, Refex Industries Limited’s stock is trading at ₹378.70, reflecting a 0.36% increase over the past week but a 7.93% decline over the past month. Despite this short-term volatility, the stock has surged 191.31% over the past year, signaling long-term investor confidence. Financially, the company maintains a Return on Equity (ROE) of 20.16% and a Return on Capital Employed (ROCE) of 24.96%, with a Price-to-Earnings (P/E) ratio of 16.61, suggesting a reasonable valuation. Analysts recommend a ‘Hold’ position, advising investors to monitor further developments in Refex’s electric mobility strategy.

On the other hand, Gensol Engineering Limited’s stock has taken a significant hit, currently trading at ₹184.50 after a 4.99% drop in the last 24 hours. The stock has fallen 22.15% over the past week and suffered a steep 79.90% decline over the past year, raising concerns among investors. Despite strong 3-year profit growth of 195.42% and revenue growth of 146.83%, the company’s high Debt-to-Equity ratio of 3.42 and significant promoter pledging of 78.44% present notable risks. Analysts suggest a ‘Sell’ position or a cautious approach until the company stabilizes its financials and reduces its leverage.

A Major Setback for the EV Sector?

The termination of this deal underscores the complexities associated with large-scale EV asset transfers. Refex Green Mobility, a subsidiary of Refex Industries Limited, has been actively expanding its footprint in electric mobility, offering sustainable transport solutions for corporate and B2B2C markets. On the other hand, Gensol Engineering Limited, known for its work in renewable energy and mobility solutions, had anticipated a significant shift in its financial positioning with the completion of this transaction.

Industry analysts believe that this withdrawal could shift market expectations, as investors were closely monitoring the deal as a benchmark for large-scale EV fleet deployments. The mutual termination indicates that both parties may have encountered operational or financial constraints that prevented the seamless execution of the asset transfer.

Strategic Re-evaluation and Future Prospects

Despite this setback, Refex Green Mobility remains committed to its broader sustainability goals. The company continues to strengthen its EV-based corporate transport services, focusing on expanding its market presence in India‘s growing green mobility sector. Meanwhile, Gensol Engineering Limited is expected to recalibrate its approach, potentially seeking alternative buyers or reconfiguring its EV strategy to align with evolving industry demands.

Commitment to Stakeholders

In its official statement, Refex Green Mobility expressed appreciation for the collaborative engagement with Gensol Engineering Limited and reassured stakeholders of its long-term commitment to sustainable mobility solutions. The company emphasized that while this particular transaction will not move forward, its dedication to responsible operations and value creation remains unchanged.

With both companies now charting independent paths following this decision, the industry will be watching closely to see how they navigate the next phase of their respective mobility strategies.