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Published: July 6, 2023
Updated: July 6, 2023

Genus Power Infrastructures: Stock Soars by Nearly 100% in 6 Weeks, Securing Major Deals in the Smart Metering Space

Genus Power Infrastructures (Genus), a smallcap company, has experienced an impressive surge in its stock price, climbing nearly 100% over a span of just six weeks. This remarkable growth can be attributed to the company's recent signing of definitive agreements with Gem View Investment, an affiliate of GIC, Singapore. These agreements have positioned Genus at the forefront of the smart metering revolution in India and have garnered significant investor interest.

Surge in Stock Price:

In the past two trading days, Genus' stock has witnessed a remarkable rally of 30%, further propelling its upward trajectory. On Wednesday, the stock was locked at the 20% upper circuit at Rs 168.90 on the BSE, accompanied by heavy trading volumes. Over the past seven weeks, the stock price has nearly doubled, surging by an impressive 97% from its May 24 level of Rs 85.89.

Strategic Agreements with GIC:

Genus' recent surge can be attributed to the company's signing of definitive agreements with Gem View Investment, an affiliate of GIC, Singapore. Under these agreements, a platform will be established for advanced metering infrastructure service provider concessions. GIC will hold a 74% stake in the platform, while Genus will hold the remaining 26%. The partners have committed to an initial pipeline with a capital outlay of $2 billion, positioning Genus as the exclusive supplier of smart meters and associated services to the platform.

Largest Transaction in the Smart Metering Space:

Genus highlights that this collaboration with GIC represents the largest transaction in India's smart metering space. The company's involvement in the smart metering revolution positions it as a key player in the industry. The strategic alliance not only strengthens Genus' market presence but also reflects the significant opportunities within the rapidly growing smart metering sector.

Investment by Chiswick Investment Pte Ltd:

In addition to the agreements with GIC, Genus has secured further investment from Chiswick Investment Pte Ltd, another affiliate of GIC. This investment amounts to up to Rs 519 crore and will be made through a preferential allotment of warrants. This infusion of funds will contribute to Genus' growth and development as it expands its market reach and strengthens its offerings in the smart metering industry.

Letter of Award and Future Prospects:

Genus has received a significant letter of award (LoA) worth Rs 2,207.53 crore for the appointment of an Advanced Metering Infrastructure Service Provider (AMISP). This includes the design, supply, installation, and commissioning of 2.77 million Smart Prepaid Meters and associated infrastructure. The company anticipates a strong influx of orders in the upcoming quarters of FY24, as State Electricity Boards (SEBs) express increased interest in the installation of smart metres, driven by the 'Reforms-Based, Result-Linked Power Distribution Sector Scheme.'

Genus Power Infrastructures' remarkable stock surge of nearly 100% in just six weeks is a testament to the company's strategic agreements and its prominent position in the smart metering space. With major collaborations and substantial deals in place, Genus is well- positioned to capitalize on the growing demand for smart metering solutions in India's power distribution sector. As the company continues to secure significant contracts and expand its market share, its future prospects appear promising.