Genus Power forms arm for advanced metering infrastructure services, stock surges 6%

Shares of Genus Power Infrastructures rose 6 percent on July 27 after the company has incorporated a wholly-owned subsidiary Genus Mizoram SPV.

The subsidiary is incorporated as a SPV (special purpose vehicle) for execution of Advanced Metering Infrastructure Service Provider Contract, the company said in an exchange filing. It will manufacture consumption meters for electricity, water or gas, flow meters and counting meters.

At 12:02 am, shares of the company were trading 4.3 percent higher at Rs 183.25 on the BSE.

Genus Power Infrastructures recently entered into the big league striking a marquee deal with GIC for an equity infusion of Rs 520 crore for 15 percent stake, and setting up a platform – an  SPV (where 26 percent is from Genus and 74 percent from GIC).

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This will enable Genus to participate in smart meter bids which is an opportunity size of Rs 30,000 crore, as per ICICI Securities.

It seems that bidding for smart meters is picking up. Orders worth Rs 18,000 crore have been concluded while another Rs 78,000 crore are under bidding, the brokerage firm said.

The company has won smart meter orders worth Rs 5,500 crore, which is 14 percent of the market, as per the domestic brokerage firm. As a result, its order book has spiked to Rs 6,300 crore as of Q1 of FY24, which is 7.5 times FY23 revenue, it added.

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