Genus Power shares rally 20%; hit 52-week high level

New Delhi: Shares of Genus Power & Infrastructure zoomed 20 per cent on Wednesday following news that Singapore's sovereign wealth fund GIC will acquire a 74 per cent stake in the company's new smart metering solutions venture for USD 2 billion (over Rs 16,000 crore).

The stock surged 20 per cent to settle at Rs 168.90 apiece -- its upper circuit limit as also a 52-week high level -- on the BSE.

On the NSE, shares of the company zoomed 19.97 per cent to end at Rs 169.05 per piece, its 52-week high as well as the highest trading permissible limit for the day.

On the volume front, 13.72 lakh shares of the company were traded on the BSE and over 3 crore shares on the NSE during the day.

Jaipur-based Genus Power, a leading manufacturer of smart electricity meters, is part of the USD 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.

In a statement on Tuesday, Genus said that GIC will invest USD 2 billion in its upcoming platform that will offer advanced metering services.

Post the deal, Gem View Investment, an affiliate of GIC, will hold a 74 per cent stake in the platform while the remaining 26 per cent 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 per cent 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.

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