FCC

GIC Affiliate & Genus Power join forces for Smart Metering Platform

2023-07-06

Gem View Investment, a subsidiary of Singapore's GIC, has entered into a definitive agreement with Genus Power & Infrastructures from India to establish a smart metering platform in Singapore called Gem Star Platform. The platform will focus on providing advanced metering infrastructure service provider (AMISP) concessions in India.

Under the agreement, the GIC affiliate will hold a 74 per cent stake in the platform for $600 million, while Genus will hold a 26 per cent stake with an equity investment of approximately $200 million. The partners have committed to an initial pipeline of projects with a capital outlay of $2 billion over three years, as stated by Genus.

Of the total investment, around $800 million will be contributed through equity by both partners, while the remaining amount will be raised through debt. Genus will be the exclusive supplier of smart meters and associated services to the platform for a period of ten years.

Additionally, another GIC affiliate named Chiswick Investment has agreed to invest Rs 5.19 billion (around $63 million) through preferential allotment of warrants, subject to GIC's decision to exercise such warrants. This investment will represent 15 per cent of the issued and paid-up share capital of Genus Power & Infrastructure on a fully diluted or as-converted basis. The funds will be utilised to enhance Genus' manufacturing capacity.

"This transaction marks a significant milestone in the smart metering sector in India and positions Genus as a leader in the ongoing smart metering revolution in the country. With these agreements, Genus will enhance its manufacturing capabilities and access to capital, enabling the deployment of energy smart meters across India," stated Genus in an official statement.

Sharat Goyal, CEO of Impact (formerly India head of AMP Capital) and transactions advisor to Genus, remarked, "Smart metering, with its robust payment security mechanism, is currently one of the most attractive asset classes in the infrastructure sector. It is also the only asset class that will have an immediate and substantial positive impact on the financial position of the Indian energy sector."

Jitendra Kumar Agarwal, Joint Managing Director of Genus, expressed, "GIC's investment confirms the promising prospects of the smart metering industry, as well as our manufacturing capabilities and track record. We are committed to contributing to India's sustainability goals by promoting efficient energy usage, as envisioned under the Time of Day metering recently announced by the government of India."

Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, commented, "We believe that smart meters will play a vital role in improving power sector efficiency in India. India remains a significant long-term market for GIC."