Smart Meter stock crashes over 4% after ₹650 crore share sale deal gets cancelled

The shares of this leading power metering company plunged by approximately 4.5 percent after sources reported that the reason is because of a failed block deal, which involved the exchange of equity shares worth Rs 650 crores.

With a market capitalization of Rs 11,254 crores, the shares of Genus Power Infrastructures Ltd are currently trading at Rs 370 per share, representing a 23.8 percent decline from its 52-week high of Rs 485.85 per share. Over the past five years, the stock has delivered a robust return of 1,839 percent.

About the incident

Chiswick Investment Pte. Ltd (an affiliate of Singapore Sovereign wealth fund GIC), announced a block deal on June 12 to sell a 3.6 percent stake in Genus Power Infrastructures Ltd, with an option to increase the sale by another 2.28 percent. 

The floor price was set at Rs 360 per share, which is a discount of 2.8 percent to the last closing price. The base deal is valued at Rs 400 crore, with an upsize option of Rs 250 crore, taking the overall estimated deal size to Rs 650 crore. However, according to sources, the block deal has likely been cancelled as of now.

Financial Highlights

The company reported a revenue of Rs 2,442 crores in FY25, up by 103 percent from its FY24 revenue of Rs 1,201 crores. Additionally, it reported a net profit growth of 257 percent to Rs 311 crores in FY25 from Rs 87 crores in FY24.

The stock delivered an ROE and ROCE of 17.18 percent and 19.20 percent respectively, and is currently trading at a P/E of 38.37x as compared to its industry average of 43.51x.

Genus Power Infrastructures Ltd is a smart metering solutions provider in India and abroad. The Company manufactures a wide range of electricity meters, including smart, prepaid, net, ABT, and grid meters, and also advanced metering infrastructure systems such as MDAS, HES, and Meter Data Management. In addition to smart metering, the company also implements turnkey power projects such as substation erection, T&D lines, and rural electrification. 

It manufactures hybrid microcircuits, which are used in telecom, automotive, industrial, and consumer electronics applications, serving utilities, DISCOMs, smart cities projects, and residential and commercial applications.

Written by Satyajeet Mukherjee

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Smart Meter stock crashes over 4% after ₹650 crore share sale deal gets cancelled appeared first on Trade Brains.