Gem View Investment Pte Ltd., an affiliate of GIC, Singapore, has signed a definitive agreement with India’s Genus Power & Infrastructures Ltd. to set up a Singapore-based smart metering platform – Gem Star Platform – for undertaking advanced metering infrastructure service provider (AMISP) concessions in India.
GIC affiliate will hold 74% stake for $600 million, while Genus will hold 26% stake in the platform with an equity investment of about $200 million. The partners have committed to an initial pipeline with a capital outlay of $2 billion over a period of three years, according to Genus.
While about $800 million will be coming by way of equity by both the partners, the rest would be generated through debt. Genus would be the exclusive supplier to the Platform for smart meters and associated services for the 10 year concessions period.
Apart from this, another GIC affiliate – Chiswick Investment Pte Ltd. – has agreed to invest ₹519 crore (about $63 million) by way of preferential allotment of warrants subject to GIC electing to exercise such warrants. This will constitute 15% of the issued and paid-up share capital of the listed entity Genus Power & Infrastructure on a fully diluted/as converted basis. The money will be utilised to augment manufacturing capacity of Genus, people familiar with the deal said.
“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. 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,” Genus said in a statement.
“Smart metering with its robust payment security mechanism is today one of the most attractive asset classes in the infrastructure sector. It is also the only asset class which will have a material and immediate positive impact on the financial position of the Indian energy sector,” said transactions advisor to Genus Sharat Goyal, CEO, Impact (ex-India head of AMP Capital.
Jitendra Kumar Agarwal, Jt MD, 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 contribute to India’s sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by Government of India.”
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..”
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