This smallcap company stock has zoomed nearly 100% in 6 weeks

In past two trading days, the stock of Genus Power has rallied 30% after signing definitive agreements with Gem View Investment, an affiliate of GIC, Singapore.

Shares of Genus Power Infrastructures (Genus) were locked at the 20 per cent upper circuit at Rs 168.90 on the BSE on Wednesday at 10:04 AM on the back of heavy volumes.

The average trading volumes at the counter more than doubled today. A combined 15.1 million shares representing nearly 6 per cent of total equity of Genus had changed hands on the NSE and BSE. In past seven weeks, the stock price of the company has nearly doubled or zoomed 97 per cent from level of Rs 85.89 on May 24.

In past two trading days, the stock has rallied 30 per cent after the company announced the signing of definitive agreements with Gem View Investment, an affiliate of GIC, Singapore for setting up a platform for undertaking advanced metering infrastructure service provider concessions.

GIC will hold a 74 per cent stake while Genus will hold a 26 per cent stake in the platform, the company said in a BSE filing.

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.

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.

Meanwhile, in separate exchange filing Genus said that it has received a letter of award (LoA) of Rs 2,207.53 crore for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including design of AMI system with supply, installation and commissioning of 2.77 million Smart Prepaid Meters, Feeder Meter, DT Meter level energy accounting and FMS of these 2.77 million smart meters.

Genus is amongst the largest players in India's electricity metering solutions industry with around 27 per cent market share. The company said it foresees a strong influx of orders in the upcoming quarters of FY24. Many State Electricity Boards (SEBs) have issued requests and solicited bids for the installation of smart meters, indicating that the 'Reforms-Based, Result-Linked Power Distribution Sector Scheme' is having a tangible effect.