GIC To Acquire 74% Stake In Genus Power's Smart Metering Venture After the deal, according to an official release, Gem View Investment, an affiliate of GIC, will hold a 74% stake in the platform while the remaining 26% shareholding will be with Genus Power
By Teena Jose
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Singapore's sovereign wealth fund GIC will acquire a 74% stake in Genus Power and Infrastructure's new smart metering solutions venture for $2 billion. After the deal, according to an official release, Gem View Investment, an affiliate of GIC, will hold a 74% stake in the platform while the remaining 26% shareholding will be with Genus Power.
"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 contributing to India's sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by Government of India," said Jitendra Kumar Agarwal, Jt MD, Genus.
According to Genus Power, the funding represents the largest transaction in the smart metering space in the country. It will also be the exclusive supplier to the platform for smart meters and associated services.
The statement further added that Chiswick Investment, another affiliate of GIC, will invest up to INR 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.
"We are pleased to partner with Genus, one of the leading metering businesses in India, to create a new platform that supports the targeted roll out of smart meters in India. We believe smart meters will play a crucial role in India's ongoing journey towards improving power sector efficiency. India remains a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors including infrastructure development," said Ang Eng Seng, chief investment officer of infrastructure at GIC.
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.
