GIC to acquire 74% stake in Genus Power's smart metering venture

Jaipur-based Genus Power, a leading manufacturer of smart electricity meters, is part of the $400 million Kailash Group.

Singapore's sovereign wealth fund GIC said on July 4 that will acquire a 74 percent stake in Genus Power & Infrastructure's new smart metering solutions venture for $2 billion (over Rs 16,000 crore).

After the deal, Gem View Investment, an affiliate of GIC, will hold a 74 percent stake in the platform while the remaining 26 percent shareholding will be with Genus Power.

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 percent 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.

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.

According to Genus Power, the funding represents the largest transaction in the smart metering space in the country.

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.

With technical and commercial losses exceeding 15 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.

Speaking on the development, Jitendra Kumar Agarwal, Jt MD, Genus, said, “GIC’s investment attests to the strong prospects of smart metering space, our manufacturing prowess and execution track record. We look forward to contribute to India’s sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by Government of India”.

Further, Raj Agarwal, CEO & MD, Genus, added, “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”.

Ang Eng Seng, Chief Investment Officer, Infrastructure at GIC, said this investment in Genus Power will help create a new platform that supports the targeted rollout of smart meters.