Shares of this smart meter stock experienced a significant decline, hitting the 5 percent lower circuit limit after promoters sold 84 lakh shares in the company. This substantial stake sale has raised concerns among investors, leading to a sharp drop in the stock price.
Price Movement
In Monday’s trading session, the share price of Genus Power Infrastructures Ltd. hit a lower circuit of 5 percent reaching Rs.361.5 per share, from its previous close of Rs.380.5 apiece.
What is the news
Genus Power Infrastructures Ltd., a leading smart meter manufacturer in India, saw a significant transaction as its promoters Seema Todi, Banwari Lal Todi, and Anand Todi sold 26 lakh, 40 lakh, and 19 lakh shares, respectively.
These shares were acquired by the Nomura India Investment Fund Mother Fund, which purchased over 59.7 lakh shares of this small-cap company through a bulk deal on Friday, 2nd August 2024. The shares were bought at a price of Rs.346.50 each, resulting in a total investment of Rs.207 crore. This transaction increased domestic institutional investor (DII) involvement in the company.
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Business Segments
Genus Power Infrastructures Ltd. operates across two key business segments: Metering segment, and Strategic investment segment. For the quarter ended June 2024 the company generated approximately 94 percent of its revenue from Metering business and 6 percent from its Strategic investment activities.
Order Book
In recent years,Genus Power Infrastructures Ltd had secured orders exceeding Rs.16,000 crores for the installation of smart prepaid meters, reflecting strong demand in the market.
This achievement has significantly contributed to the company’s total order book, which has now surpassed Rs.21,000 crores, including Special Purpose Vehicles (SPVs) and the GIC platform.
Capacity Expansion
With a current capacity to comfortably produce around 1 million meters monthly, the company is expanding its capacity at the Guwahati plant to produce around 1.5 crore electronic meters annually.
Genus Power Infrastructures Ltd. anticipates the installation of approximately 60 to 70 million smart meters in India during the current financial year, which will significantly boost their market presence and revenue growth, positioning them as a key player in the smart metering industry.
Financials
With a market capitalization of Rs.10,981 crores, Genus Power Infrastructures Ltd. announced consolidated revenue of Rs.414 crores for the quarter ending June 2024. This represents a substantial increase of 58.6 percent compared to Rs.261 crores in the same quarter last year.
Additionally, the net profit surged by 121 percent, reaching Rs.42 crores, up from Rs.19 crores during the corresponding period last year.
Shareholding Pattern after Bulk deal
According to the June 2024 shareholding pattern, the promoters of Genus Power Infrastructures Ltd. hold a 42.66 percent stake in the company. Foreign Institutional Investors own 17.91 percent, while Domestic Institutional Investors hold 4.81 percent. Retail investors, which include individual investors and others, account for 34.62 percent of the total shares.
About the Company
Genus Power Infrastructures Limited, part of the Kailash Group manufactures metering solutions and undertakes turnkey engineering, construction, and contract projects. Additionally, it engages in strategic investments.
Written by – Siddesh S Raskar
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