Genus Power Infrastructures share price jumped 19% to Rs 168.70 and made a fresh all-time high today after the company signed definitive agreements with Gem View Investment, an affiliate of GIC, Singapore, for setting up a platform for undertaking advanced metering infrastructure service provider (AMISP) concessions. GIC affiliate will hold a 74% stake for $600 million, while Genus will hold a 26% stake in the platform with an equity investment of about $200 million. The partners have committed to an initial pipeline with a capital outlay of $2 billion over a period of three years, according to Genus.
Jaipur-based Genus Power is part of the $400 million Kailash Group. It has two business divisions — metering solutions and an EPC segment providing a complete range of services to the power sector. Genus on Tuesday said that GIC will invest $2 billion in its upcoming platform that will offer advanced metering services. As part of the deal, Chiswick Investment, another affiliate of GIC, will invest up to Rs 519 crore by way of a preferential allotment of warrants which will constitute 15% of the paid-up share capital of Genus Power on a fully diluted/as converted basis.
Genus Power will be the exclusive supplier to the platform for smart meters and associated services. Under the national smart metering project, which is part of the Revamped Distribution Sector Scheme (RDSS), the government is planning to install 250 million smart meters by 2025 with an estimated investment of $30 billion.