Genus Power Hits 20% Upper Circuit On $2-Billion GIC Deal, Shares Rally 71% In 30 Days

Shares of Genus Power Infrastructures Ltd on Wednesday hit 20% upper circuit soon after the company stated in its BSE filing that Singapore's sovereign wealth fund, Gem View Investment, an affiliate of GIC will hold 74% stake and the remaining stake will continue to remain with Genus.

It is worth noting that GIC is set to acquire a 74% stake in Genus smart metering solutions arm for a whopping $2 billion (or more than Rs 16,000 crore).

According to the BSE filing of Genus, "GIC will hold 74% (seventy four percent) stake while Genus will hold 26% (twenty six percent) stake in the Platform. The partners have committed to an initial pipeline with a capital outlay of (approx.) USD 2,000,000,000 (USD Two billion). Genus would be the exclusive supplier to the Platform for smart meters and associated services."

Under the agreement, Investment by Chiswick Investment Pte Ltd, another affiliate of GIC, plans to invest up to INR 519,00,00,000 (INR Five Hundred and nineteen crores) via a preferential allotment of warrants which shall constitute (if and when GIC elects to exercise such warrants) 15% (fifteen percent) of the issued and paid-up share capital of Genus on a fully diluted/as converted basis.

Raj Agarwal, CEO & MD, Genus, added, "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".

Genus Stock Performance & Return: Last trading price of Genus Power share is Rs 168.80 per share with intraday gain of 19.93%. The stock also hit 20% upper circuit today. The stock has been hitting back to back new 52-week high in a row for the last 3 days i.e. July 3, July 4, and July 5, 2023. Genus Power shares offered return of 45% in just last 1-week, 71% return in last 1-month, 97% return YTD, 127% return in last 1-year, and 617% return in last 3-years.

About Genus: Genus is the largest manufacturer of "smart meters" and has an integrated manufacturing facility that has supported its widespread installation of meters across India. With an in-house R&D centre and deep experience in Operations & Maintenance (O&M) of smart meters, Genus is a market leader in India in the metering business.

About GIC: GIC is a leading global investment firm established in 1981 to secure Singapore's financial future. As the manager of Singapore's foreign reserves, we take a long-term, disciplined approach to investing, and are uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Our long-term approach, multiasset capabilities, and global connectivity enable us to be an investor of choice.