BluSmart repays after 'default'. Now it has to convince bondholders

BluSmart Mobility, an electric cab-hailing service, defaulted on ₹30 crore worth of bonds in early February because of a cash crunch, said two people aware of the development.

- Ranjani Raghavan & Gopika Gopakumar

The Gurugram-based company paid the holders of non-convertible debentures (NCD) over the weekend, said the people cited above on the condition of anonymity. However, the initial delay caused the trustee of the NCDs to trigger a "cross-default" and call a meeting on 17 March. A cross-default puts a borrower in default on all obligations if it fails to repay one on time.

The NCD payment of ₹30 crore at a coupon rate of 12% was due on 3 February, one of the people cited above said. The company repaid around ₹18 crore by Friday, 21 February, while the rest of the amount was paid by Saturday.

Founded by Anmol Jaggi, Puneet Jaggi and Puneet Goyal in 2019, BluSmart offers an EV cab-hailing and charging service in Delhi and Bengaluru. In January, it extended its services to Mumbai on the city's airport route. Anmol Jaggi is also the promoter of Gensol Engineering and Matrix Gas.