Genus Power shares in focus on formation of JV with GIC affiliate

Genus Power Infrastructures Ltd (Genus Power) on Tuesday announced the signing of definitive agreements with Gem View Investment, an affiliate of GIC, Singapore for setting up of a platform for undertaking advanced metering infrastructure service provider concessions.

GIC will hold 74 per cent stake while Genus will hold 26 per cent stake in the platform, the company said in a BSE filing. The two partners have committed to an initial pipeline with a capital outlay of $2 billion. Genus would be the exclusive supplier to the platform for smart meters and associated services.

Genus Power shares rose 8.81 per cent to settle the day at Rs 141 on BSE.

An affiliate of GIC Chiswick Investment Pte will invest up to Rs 590 crore by way of a preferential allotment of warrants, which would constitute 15 per cent of the issued and paid-up share capital of Genus on a fully diluted/as converted basis.

The transactions are subject to the approval of Genus shareholders and fulfilment of customary closing conditions to the satisfaction of the GIC affiliates, Genus said.

"This represents the largest transaction in the smart metering space in the country and positions Genus at the forefront of the smart metering revolution underway in the country. With these transactions, Genus would supplement its manufacturing and execution prowess with access to capital. Genus will scale up the deployment of energy “smart meters” across India, supporting energy security and transition through grid optimization and efficiency," Genus said.

To recall, the government is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), with a plan to install 250,000,000 meters by 2025 with an estimated investment of $30 billion. With technical and commercial losses exceeding 15 per cent (fifteen percent) for all major Indian utilities leading to high financial losses, smart metering projects under the RDSS scheme are conceptualised to reduce such losses, improve operational efficiency of DISCOMs and improve their financial sustainability by providing results linked financial assistance.

CEO & MD Raj Agarwal said: “Genus has achieved market leadership through its strong focus on R&D and innovation. Our capacity to deliver next generation Smart meter technology and related Solutions for the evolving needs of Indian energy sector will be an asset to the Platform.

Also Watch: Senco Gold IPO subscribed 45% today; star investor Prashant Jain picks up stake in anchor round, check GMP, should you apply?