New Delhi: Singapore’s sovereign wealth fund GIC will acquire a 74% stake in Genus Power & Infrastructure’s new smart metering solutions venture for $2 billion, the company said in a press release.
Post the deal, Gem View Investment, an affiliate of GIC will hold a majority stake of 74% and controlling rights in the platform, while Genus will hold the remaining 26%, it added.
As part of the deal, Chiswick Investment, another affiliate of GIC, will invest up to ₹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.
The transactions are subject to the approval of Genus shareholders and fulfilment of customary closing conditions to the satisfaction of the GIC affiliates, the company said.
“This represents the largest transaction in the smart metering space in the country and positions Genus at the forefront of the smart metering revolution underway in the country. With these transactions, Genus would supplement its manufacturing and execution prowess with access to capital. Genus will scale up the deployment of energy “smart meters” across India, supporting energy security and transition through grid optimization and efficiency,” it added.
To recall, the government is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), with a plan to install 250,000,000 meters by 2025 with an estimated investment of $30 billion. With technical and commercial losses exceeding 15 per cent (fifteen 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.
CEO & MD Raj Agarwal said: “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.
Jitendra Kumar Agarwal, Jt MD, Genus, said, “We are delighted to have a long-term investor like GIC choosing Genus as its exclusive partner in the sector. 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”.
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.
