BluSmart bondholder saga and way ahead
Gensol Engineering and BluSmart have common promoters – Anmol and Puneet Singh Jaggi. Blusmart Mobility, the ride-hailing platform, and Gensol Engineering share the same promoters, but the two companies’ relationship is deeper than that. Blusmart has a 6,000-strong fleet. Nearly two-thirds of it is leased from Gensol and accounts for over half of Gensol’s assets under management in leasing. The leasing agreement between the two companies helps Blusmart pay less than what other customers have to, thereby putting Gensol’s minority shareholders at a disadvantage. As per Gensol’s annual reports, the transactions with Bluesmart were at “arm’s length” but it appears that wasn’t the case. Neither did Gensol seek shareholders’ nod for these pacts or disclose the term. Over the past year, multiple new-age fintech platforms facilitated the sale of nearly Rs 100 crore worth of BluSmart Mobility bonds to retail investors and high net-worth individuals (HNIs), offering a coupon rate of around 12%. While the term sheet and deed of hypothecation says investment in bonds is secured, by BluSmart’s EV fleet, this security is only valid if Blusmart legally owns those vehicle. But if the vehicles where bought under another group companies that means the security banking the NCD may not be enforceable at all. In this case it turned out that vehicles were bought by Gensol, which were hypothecated by Gensol to lenders and leased to Blusmart. Debt platform Yubi, wealth management startup Centricity and revenue-based financing startup Klub are among fintechs that syndicated BluSmart’s debt instruments to retail investors and HNIs, according to documents sourced from the Ministry of Corporate Affairs (MCA). BluSmart sold bonds worth around Rs 62 crore to Yubi while Centricity and Klub acquired bonds worth Rs 2.5 crore and Rs 8 crore, respectively, as per regulatory filings. In June 2024, there were complaints made to Sebi. The brokers were selling these bonds to the retail investors and HNIs till recently. So, due diligence is in question – said an investor who is holding a significant amount of BluSmart bonds. According to interim SEBI order, of the Rs. 978 crore loaned to Gensol Engineering to buy EV for BluSmart, the Jaggi brothers used Rs. 262 crore for personal expenses. In the case of default, bonds holders BluSmart are now in the same situation as lenders like Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA). Following point need to be considered and evaluated (covered in Part B below): What is the company background? Clues on issue unfolding in company operations Industry views and Way ahead expected Only time could tell if Gensol and Blusmart can turn things around. And if there’s one thing market participants even for bondholders, can take away from this, it’s that when numbers and narratives don’t align, caution is key. Part B Background of Gensol Engineering and Blusmart Gensol went public in 2019 through an SME IPO. And working in renewable energy and EV mobility, two fast-growing sectors, meant that there was a lot of excitement around it. The IPO saw good demand, the stock price soared, profits grew and by 2023, it had moved to the NSE and BSE main platforms. Add to it the fact that the company had a solid order book, rising revenues and big expansion plans, and Gensol looked like a great investment. Two companies—Blusmart Mobility Pvt. Ltd and Gensol Engineering Ltd.—are more closely intertwined than is immediately apparent. Co-founded by Jaggi and his brother Puneet, along with Punit Goyal in 2019, Blusmart was among the earliest ride-hailing companies in India to take on Uber and Ola with an all-electric fleet. Backed by the venture-capital arm of energy giant BP, Blusmart was valued at US$134 million in April 2023. The biggest car supplier for Blusmart, though, is Gensol itself—accounting for two-thirds of its fleet. And Blusmart is Gensol’s largest customer in the leasing business by a distance. In other words, the relationship between the two has served them both well. But the leasing arrangement seems to favour Blusmart at the expense of Gensol’s minority shareholders. Clues on issue unfolding in company operations Something wasn’t quite adding up beneath the surface. And it all started bubbling up when two ratings agencies, ICRA and Care Ratings, recently downgraded its credit ratings. First up is the fact that Gensol has huge debts to pay – about ₹1,146 crores. Compare this to its reserves and equity of ₹589 crores and you get a debt-to-equity ratio of about 2x (a sign of financial stress). The bigger problem? It’s struggling to pay back its loans (which means troubles in cash flows). Even murkier? GEL has been telling rating agencies that all debts are being paid on time. So think about it – if a company starts doctoring its paperwork to appear financially stable, it raises big questions about what else could be hidden. It throws the governance and credibility in question. And when lenders and banks lose trust, funding dries up quickly. 1. Credit rating downgrade In early March, two credit rating agencies – Care Ratings and ICRA – downgraded Gensol’s ratings. Care Ratings downgraded long-term and short-term bank facilities from BB+ (Stable) to D and ICRA downgraded long and short term loan from BBB- (Stable) to D. The “D” rating stands for default status. The probe showed the first instance of default by Gensol on December 31, 2024, even as the company submitted statements to the CRAs certifying there was no delay or default in servicing any loans. Gensol had concealed facts regarding its debt servicing track record. Delays in servicing debt to Blusmart bondholders and a rise in share pledge, were the red flags. 2. Drop in promoters holding and increase in promotor holding pledge A sharp fall in promoter holding in Gensol to 35% as of March 31, 2025. This is nearly half of the 62.65% stake promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, held at the end of December 31, 2024. The promoter holding has come down while the debt in the company has risen substantially from Nil in FY17 to ₹1,045 crore in the
Silver ETFs betting rally will continue
Silver ETF in India have seen explosive growth. By the end of February 2025, the number of silver ETF had risen to 12 with monthly average asset under management (AUM) surging to Rs. 14,000 crores more than triple the 4,000 crores held by 11 EFTs a year earlier. What is a Silver ETF? A silver ETF is a type of mutual fund that tracks the price of physical silver and aims to replicate its performance. As with a typical mutual fund, this ETF also pools money from multiple investors and uses the funds to purchase silver of the highest fineness (999.0 parts or 99.9% purity). The physical silver that the fund purchases is stored in high-security vaults by custodian banks. Although a silver ETF is a type of mutual fund, it differs slightly from traditional funds. The units of the ETF are listed on stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Interested investors can buy and sell units of silver ETFs like stocks through a trading account. By investing in a silver ETF, you can not only effectively gain exposure to silver without physically owning it but also avoid all the risks commonly associated with investing in the precious metal, such as safety and storage. How Do Silver ETFs Work? Silver ETFs mirror the price of physical silver. This essentially means that the value of the fund is directly linked to the price movements of the precious metal. For instance, if the price of silver declines, the value of the ETF will also go down. On the other hand, if the price of silver increases, the value of the ETF will rise. Each unit of a silver ETF represents 1 gram of the domestic price of silver. So, if the price of silver is ₹100 per gram, the ETF’s unit price will also be approximately ₹100 or slightly lower (after accounting for the expense ratio). Now, suppose you purchase 100 units of a silver ETF at ₹100 each by paying ₹10,000. In this case, you would essentially own 100 grams worth of silver. If the price of the precious metal rises to ₹150 per gram, the ETF’s value will also increase proportionately. At this point, you may choose to liquidate your holdings by selling the units on the exchanges at a profit of ₹5,000 (₹50 per unit x 100 units). Unlike equity or debt mutual funds, silver ETFs are passive investment options that require no active monitoring. Therefore, these funds usually have much lower expense ratios, making them highly cost-efficient investment options. Why such a rally for Silver? Silver is a crucial material for high growth industries It is the best conductor even better than aluminium, making it a key player in next generation industries The metal is critical to solar panels, electric vehicle batteries medical equipment and water purification technology Beyond its industrial uses, silver is gaining traction as a reserve asset. Unlike gold, primarily a monetary asset, silver has a dual identity as both a precious metal and an industrial commodity. That means its price is influence not just by macro-economic factors such as inflation and interest rates but also by shifts in base metal markets. With inflation risk falling global interest rates, and rising geopolitical tensions, both gold and silver remain key hedges. But silver’s strong industrial demand could give it an edge.
If you’ve done these 5 things by 40, you’re more successful than you think
Turning 40 can feel like one of those major life checkpoints. You might find yourself asking, “Have I done enough? Am I where I’m supposed to be?” It’s easy to get caught up in comparisons—especially these days, when a quick scroll through social media can make everyone else look like they’re crushing it 24/7. But here’s a thought: success isn’t always measured by fancy job titles, social media clout, or the size of your bank account. Sometimes it’s about the quieter, foundational things you’ve built over the years. If you’ve done the five things I’m about to share, chances are you’re already more successful than you think. Let’s dive in. 1. You know (and live by) your values Your values become like a personal compass, guiding you away from paths that might look lucrative or exciting on the surface but leave you feeling hollow. When you make choices that line up with who you are at your core—whether it’s walking away from a toxic job, standing your ground in personal relationships, or even deciding how to spend your free time—you’re already winning. If by 40 you’ve pinpointed what truly matters to you and you make your decisions accordingly, you’re ahead of the game. Not everyone develops that level of clarity and courage to act on it. And if you ask me, there’s real success in that sense of inner alignment. 2. You’ve cultivated meaningful relationships Ever notice how some folks hit 40 with a handful of truly ride-or-die friends, while others have a giant circle but zero people they’d call at 2 a.m.? That’s because real relationships—be they friendships, romantic partnerships, or family ties—require consistent effort and emotional investment. One of key findings by famous Harvard Study on adult development that started tracking people’s lives back in 1938 was that strong relationships significantly affect our health and happiness. People who have meaningful connections not only feel more fulfilled, they also tend to live longer. So if you’ve surrounded yourself with a few close, supportive individuals by the time you reach 40, your life is already a success story in the making. It might seem simple, but in a world filled with networking events, Zoom calls, and social media “friends,” having even two or three genuine connections is huge. It could be as simple as sending a text to check in or remembering a friend’s big presentation at work. If you’ve been that friend who invests time in the little things, you’re doing something absolutely essential that a lot of people overlook. 3. You’ve learned to manage your finances (or at least you’re trying) I know, talking about finances can be as fun as watching paint dry, but let’s be honest: poor money management is one of the biggest sources of stress in adulthood. I started reading books on personal finance and time-management. “I’ve mentioned this before but it was a game-changer” Some insights were basic—pay yourself first, build an emergency fund, invest in assets that grow over time—but it all added up to a more stable way of living. “Lack of patience changes everything.” When we’re impatient financially, we rack up credit card debt or jump into questionable investments. Learning to handle money with a bit of patience and foresight is underrated. If by 40 you’re no longer living paycheck to paycheck (or at least have a plan to break out of that cycle), that’s a massive win. In a culture that often glamorizes overspending, being financially mindful is a real power move. 4. You’ve embraced continuous learning One of the biggest indicators of long-term success is the willingness to remain a perpetual student of life, well after formal schooling ends. Take on that personal development seminar you are curious about or challenge yourself to read one new non-fiction book each month. That commitment to keep learning is what keeps us flexible, relevant, and infinitely more interesting. By cultivating a habit of continuous learning, you’re positioning yourself to adapt and thrive no matter how the world shifts around you. If you’re already doing this, trust me, you’re far more successful than someone who might have a fancy title but is closed off to new knowledge. 5. You’ve developed resilience through failure Last but not least, resilience—the ability to bounce back after a setback and keep moving forward. Failure isn’t a sign that you’re doomed; it’s the price of entry if you want to achieve something worthwhile. Seth Godin famously said, “The cost of being wrong is less than the cost of doing nothing.” By 40, if you’ve accumulated your fair share of failures and learned to pivot instead of quitting outright, that’s something to celebrate. Also, resilience isn’t just about career or finances. It’s about weathering tough personal times—maybe you had a significant relationship end, or you faced a health scare, or you lost someone you loved. Getting back up and finding a sense of direction again is a hallmark of true success. It indicates you’re not just drifting through life; you’re actively shaping it, even when circumstances feel overwhelming. Putting it all together Life at 40 shouldn’t just be a checklist of achievements. It’s more like a puzzle you’ve gradually been piecing together. If you’ve got a clear sense of your values, a handful of meaningful relationships, a workable plan for your finances, a thirst for continuous learning, and resilience when things go sideways, you’re in a pretty good place—no matter what anyone else’s highlight reel might suggest. Success isn’t always about having the perfect job, the perfect home, or even the perfect life. More often, it’s about small daily habits, the people you care about, and the willingness to keep growing. If that’s something you can relate to, you’ve already made it. We tend to underestimate our own progress, especially when we hold ourselves to society’s ever-shifting standards. But trust me, if you’re ticking even a couple of these boxes, you’re probably doing far better than you realize. And if you’re not quite there yet? That’s okay—there’s plenty of time
10 Key lessons from ‘The Psychology of Money’ for financial success
The Psychology of Money is a top-notch book written by Morgan Housel. The book is shedding more light on an underappreciated approach towards money, investing and forecasting, stating that “Financial success is not a hard science. It’s a soft skill, how you behave is more important than what you know.” It focusses on how people view money, why they take debt, and how they can create and save wealth. Unlike other books that talk about interest rates, stock markets, etc., Morgan’s book says — “To grasp why people bury themselves in debt, you don’t need to study interest rates; you need to study the history of greed, insecurity, and optimism.” Morgan Housel shows that the essential topic of money is influenced by emotions and one’s personal experiences, family history and the times they were brought up in. He surprisingly points out that only few people make financial decisions purely with a spreadsheet, while a greater number make them at the dinner table being influenced by emotional and unique variables. His insights touch areas such as our approach to money in general as well as spending, investing and saving. Here are the top takeaways that are mind blowing in terms of how people think of money in their everyday lives. WE JUDGE A BOOK BY ITS COVER We should be less judgemental and more understanding when looking at other people’s seemingly terrible or odd financial decisions. We should realize that we all have different reasons for making our financial choices. We all have a completely different approach to money in general – we were all raised by different parents who passed on different values and set an example of different ways to make income. When adding various cultures, traditions, and a country’s economy, it becomes very clear that one’s perception of actions and behaviour required to take care of one’s family is tremendously different from another’s. How one feels about making, investing, saving, and spending money depends on where and when one was born and in what circumstances one was brought up in. An individual investor’s willingness to bear risk depends on personal history. If you grew up when inflation was high, you invested less of your money in bonds later in life compared to those who grew up when inflation was low. If you happened to grow up when the stock market was strong, you invested more of your money in stocks later compared to those who grew up when stocks were weak. Your perspective on money and how you approach it depends on your personal experiences, including your family’s financial situation. WE UNDERESTIMATE THE POWER OF LUCK AND RISK It is reality that every outcome in life is guided by forces in addition to the individual effort one puts when trying to achieve their goal. As Bill Gates once said ”Success is a lousy teacher because it seduces smart people into thinking they can’t lose.” Regardless of your effort and preparation, things tend to spin in their own unpredictable ways, so as a result both luck and risk can happen even to the smartest person. We tend to explain someone else’s failure as a bad decision while our own failure is considered a calculated risk. You could be lucky in buying stock in a game production company just before the world premiere of a new game edition, which was promoted everywhere, so then you’re luckily at 20% higher stock price. On the other hand, as Housel says you could buy stock, and 5 years later it’s gone nowhere or even dropped. It’s possible that you made a bad decision by buying it, but it’s also possible that you made a good decision because you had an 80% chance of making money, but happened to end up part of the 20% of unlucky ones. In both cases you can fail or succeed, but there are many different variables and circumstances that influence the outcome other than just your individual effort and preparation. This is why you should learn to deal with failure and plan your financial life in a way such single decisions don’t wipe you out so you keep making new ones. WE NEVER HAVE ENOUGH As Housel pointed out, once we reach our goal we can’t stop and always thrive for more. “The hardest financial skill is getting the goalpost to stop moving”. You could call such an attitude towards money very ambitious, because who wouldn’t want to earn more money, get nicer and more expensive stuff, and buy a bigger house? This can be a very tricky approach to making money as well as spending money. Not knowing when to stop can become dangerous once we get a taste of having more. It can mean many things – either sacrifice your family life to earn more money and work longer hours, but it could also mean committing crime in order to make your business earn more money. Either way, there are definitely certain things like your family, reputation, or just sleeping well at night, that you just don’t risk. The example of Rajat Gupta, how he rose from the slums of Calcutta and rose to the higher positions in McKinsey, all this did not stop him from carrying out a well-planned insider trading scam. This happened as he lacked the sense of enough. TRY TO GET WEALTHY AND STAY WEALTHY Everyday we search for new possibilities to get closer to a general dream of getting wealthy. This is great, but have you ever considered what it means to be wealthy? What is the ultimate outcome we look for and what happens when we get there? Well, the author draws a line between being wealthy which is invisible and being rich which is more artificial and to show off. We can earn more or have big returns, but if we spend proportionally more we probably don’t get to keep what we could. It is important and very underappreciated to keep in mind that getting more money is one
Sebi rolls out Specialised Investment Fund with Rs 10 lakh minimum investment
December 18, 2024 Market regulator Securities and Exchange Board of India (Sebi) notified a new asset class between portfolio management services (PMS) and mutual funds and has called it the ‘Specialized Investment Fund’ (SIF). The SIF asset class will accept investments of Rs 10 lakh or more across all investment strategies. The new asset class. positioned between MFs and PMS will open different investment products and approaches to Indian investors. Why the Need for SIFs? For many ambitious investors, mutual funds and PMS have long been the go-to investment options. Mutual funds have provided a more hands-off, diversified way to invest, while PMS has catered to those willing to invest larger sums with personalized strategies. However, there has always been a gap between the two. The minimum investment threshold of Rs 10 lakh ensures that these funds remain focused on high-net-worth individuals (HNIs) or accredited investors who have the financial capacity and expertise to manage such investments. These investors are looking for higher returns and are comfortable with more volatile asset classes. With a minimum investment ceiling of Rs 10 lakh, SIFs allow asset managers to allocate up to 15% in a single security—significantly higher than the 10% limit under traditional mutual fund schemes. For fixed income strategies, exposures can now extend to 20% in a single issuer, with the possibility of increasing this to 25% REITs and InvITs: SIFs can allocate up to 20% of their assets to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), but they cannot invest more than 10% in any single issuer. This provides a level of diversification while still allowing for targeted exposure to real estate and infrastructure sectors. Mutual funds are more suitable for conservative investors or those with a lower risk appetite. On the flip side, PMS offers tailored strategies but typically requires a significant minimum investment—often too large for smaller investors, and with a complexity that may seem daunting for those without deep financial expertise. This is where the SIF comes in. Can an SIF offer derivatives as an investment strategy? MFs, as of now, cannot offer derivatives as an investment strategy, but only for hedging and portfolio rebalancing purposes. In a draft proposal earlier this year, Sebi had suggested allowing the new asset class to take exposure in derivatives. However, the framework is silent on derivatives—a critical aspect of modern portfolio management. Given India’s prominence in global derivatives volumes, clarity in this area could further strengthen the appeal and versatility of SIFs. In the draft proposal, Sebi also used another example of differentiated products like ‘Inverse ETFs’ that can be offered by SIFs. However, the gazette notification dated December 16 didn’t mention any such product. Taxation rules should be similar to mutual fund, more details are expected from SEBI on this. Meanwhile, I feel that as an evolving asset class, the SIF is a pivotal addition to India’s investment ecosystem, blending flexibility, higher exposure limits, and diversification potential to meet the growing sophistication of investor needs. CA. Atul Kela
![Atomic Habits by James Clear [10 minute summary]](https://caakinvestments.com/wp-content/uploads/2025/03/atomic-habits-img-e1742464595472.jpeg)
Atomic Habits by James Clear [10 minute summary]
People think when you want to change your life, you need to think big. But world – renowned habits expert James Clear has discovered another way. Real changes comes from the compound effect of hundreds of small decisions – doing two push-ups a day, waking up five minutes earlier, or reading just one more page. If we’re someone who has tried and failed to get new habits to stick, then Atomic Habits by James Clear is the book for you. It’s contains a simple framework for how to actually implement habits and reach goals, with lots of insightful tips and tricks along the way. Let’s take a closer look at that framework. Bear in mind this is just a summary – if something resonates I’d highly recommend diving into the whole book. The core message of Atomic Habits by James Clear Often when it comes to planning our new habits, goals, or resolutions, we focus on big changes. We want to run a marathon, become fluent in French, journal every day — and then we wonder why we fail each time. The reality is that we don’t change overnight, and that making new habits (and breaking old habits) takes time. It’s a long game and it takes patience. In Atomic Habits, James Clear talks of the ‘compounding effect’ and the idea that getting 1% better every day leads to large changes over time, even if we don’t notice that change day-to-day. The first part starts to outline the process of building habits, which the rest of the book will then delve into. He defines a habit as ‘a behaviour which is done so many times it becomes automatic’. The four steps to ensure that we keep repeating the behaviour to make the habit stick, are: Make it obvious Make it attractive Make it easy Make it satisfying Step 1: Make it obvious The first step in making a new habit, according to James Clear, is to observe your existing habit. These existing habits also serve to prove the point that if we repeat something enough times, our brain picks up on it and predicts the outcome without any conscious thought i.e. the action becomes automatic. For most of us it just doesn’t feel right to get into bed without brushing our teeth, for instance. This section also covers the importance of environment in making habits stick. It’s partly about making that new cue stand out, such as placing bottle of vitamins on the kitchen counter each night so that we see them in the morning and are reminded to take them. And what about breaking habits? Essentially, it’s the reverse: make it invisible. It’s easier to avoid temptation than to resist it, so we could try putting your video game controller away, out of sight, in a cupboard. Step 2: Make it attractive The more attractive something seems to us, the more likely we want to repeat that behaviour regularly. So, if we can make a new habit seem attractive, we’re more likely to keep doing it. Part of making it attractive is realising that as humans we are social beings, and we tend to imitate the actions of those around us which are seen as positive. This could be people close to us, family and friends, the wider crowd or society we identify with, or people with status and prestige. So, we could join a community or group where our desired behaviour is common, to give ourself further incentive to do that action. We thrive on approval, praise, and respect, and we want to fit in with our tribe — so exploit these things to help build the new habit. To develop a creative writing habit, join a local writing group. To become fitter, start with a gym class or running group. Step 3: Make it easy We humans are simple creatures, and we tend to follow the ‘law of least effort’, taking the option which is easiest or requires the least work. So, to make a behaviour stick, we want to make it as easy as possible to complete. We can do this by reducing the friction with behaviours we want to adopt. If we want to increase fitness levels, lay out workout clothes the night before we plan to go to the gym. The reverse is true with behaviours we don’t want to keep: increase the friction and make them difficult. Hide the chocolate at the back of kitchen cupboard if we don’t want to eat it, for instance. In this section James Clear also sets out the two minute rule: when we start a new habit it should take less than 2 minutes to complete. Planning habits is easy, but ultimately we need to take action to build habits. So start breaking down goals and habits into small steps, starting with the two minute starting action. If you want to run a marathon, start running for 2 minutes each day. Then, repeat that single 2 minute action for long enough to become automatic. Once it feels automatic, like part of your day-to-day routine, add to it to build up the habit. That might be increasing the amount of time we do the behaviour for, or the frequency we do it. We can also make it easier by automating our future behaviour to fit in with the type of person we want to be. If we want to travel more but don’t have the money, set up a direct debit every month after your pay comes in, transferring a small amount into a savings pot. If we want to build a yoga habit, pay for a month’s worth of weekly evening classes upfront and put them in your diary. Step 4: Make it satisfying The previous sections have been about ensuring that a behaviour happens in the first instance (make it obvious, attractive, easy). Making it satisfying is about making sure that we repeat that behaviour again the next time and the time after that — making it a habit rather than a one-off.