USD 2 billion projects: This small-cap electrical equipment company signs an agreement with Gem View Investment Private Ltd!

The stock gave multibagger returns of 129.64 per cent in just 1 year and over 600 per cent in 3 years.

On Wednesday, one of the Top Gainers on BSE, shares of Genus Power Infrastructure Ltd zoomed 20 per cent to Rs 168.90 per share from its previous closing of Rs 140.75 per share. The shares also traded at a new 52-week high of Rs 168.70 per share with a spurt in volume by more than 3 times on BSE.

Genus Power Infrastructures Ltd., a leading metering solutions provider & manufacturer for the power distribution industry, has announced the signing of definitive agreements with Gem View Investment Pte Ltd, an affiliate of GIC, Singapore (“GIC”) for:

1) Setting up of a Platform (“Platform”) for undertaking Advanced Metering Infrastructure Service Provider (“AMISP”) concessions. GIC will hold a 74 per cent stake while Genus will hold a 26 per cent 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; and

2) Investment by Chiswick Investment Pte Ltd, an affiliate of GIC, of up to Rs 519 crore by way of a preferential allotment of warrants which shall constitute (if and when GIC elects to exercise such warrants) 15 per cent of the issued and paid-up share capital of Genus on a fully diluted/as converted basis.

The transactions are subject to the approval of Genus shareholders and the fulfilment of customary closing conditions to the satisfaction of the GIC affiliates. 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.

The Government of India is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme, with a plan to install 250,000,000 meters by 2025 with an estimated investment of USD 30,000,000,000. With technical and commercial losses exceeding 15 per cent for all major Indian utilities leading to high financial losses, smart metering projects under the RDSS scheme are conceptualised to reduce such losses, improve the operational efficiency of DISCOMs and improve their financial sustainability by providing results-linked financial assistance. Smart meters are also at the core of operationalizing the recently announced Time of the Day Metering (ToD) announced by the Government of India.

Earlier, the company has won an order worth Rs 2,207.53 crore for an Advanced Metering Infrastructure Service Provider (AMISP) including the design of an AMI system with supply, installation and commissioning of 27.69 Lakhs Smart Prepaid Meters, Feeder Meter, DT Meter level energy accounting and FMS of these 27.69 Lakhs smart meters. The company’s total order book stood at Rs 4,115 crore as of March 31, 2023. Including the above order, the company order book stands at Rs 6,322.53 crore.

Furthermore, the company have approved a dividend of 75 per cent or Rs 0.75 per share of a face value of Rs 1 each for the financial year March 31, 2023.

The stock gave multibagger returns of 129.64 per cent in just 1 year and over 600 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.