GIC, Genus Power Infra tie up to invest $2 bn in smart meter venture

Genus says this is the largest transaction in the smart metering space in India

GIC, Singapore, has launched a new platform in India to fund smart metering projects in the country. The leading global investment firm has joined hands with Genus Power Infrastructures (Genus), a leading metering company, to set up the platform. GIC will hold a 74 per cent stake; the balance will be Genus.
 

The partners have committed to an initial pipeline with a capital outlay of $2 billion, and Genus would be the exclusive supplier to the platform for smart meters and associated services, Genus said in a public statement.

The company said this is 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.

“Genus has signed definitive agreements with Gem View Investment Pte Ltd, an affiliate of GIC, Singapore, setting up of a platform for undertaking advanced metering infrastructure service provider concessions,” said the statement.

The company also said, additionally, Chiswick Investment Pte Ltd, another affiliate of GIC, will invest up to Rs. 519 crore by way of a preferential allotment of warrants which shall constitute 15 per cent of the issued and paid-up share capital of Genus on a fully diluted/as converted basis. This is if and when GIC elects to exercise such warrants, it said.

“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 optimisation and efficiency,” the company said.

Jitendra Kumar Agarwal, joint managing director, 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 contributing to India’s sustainability goals by facilitating efficient use of energy envisioned under the time of day metering recently announced by the Government of India”.

The Centre has an ambitious target of installing 250 million meters by 2025, with an estimated investment of $30 billion.

Ang Eng Seng, chief investment officer of infrastructure at GIC, said, “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.”