Shares of Genus Power Infrastructures Ltd. jumped nearly 20% after Singapore’s sovereign wealth fund GIC agreed to buy a 74% stake in the company's new smart metering solutions venture for $2 billion.
GIC's affiliate, Gem View Investment, will hold a 74% stake in the platform while the remaining 26% shareholding will be with Genus Power.
Chiswick Investment Pte Ltd, another affiliate of GIC, will invest Rs 519 crore by way of preferential allotment of warrants, as part of the deal. This will constitute 15% of the issued and paid-up share capital of Genus Power on a fully diluted as-converted basis.
Shares of the company surged 18.31% to Rs 166.70 apiece as of 10:40 a.m., compared with a 0.08% decline in the benchmark Nifty 50. The stock hit a lifetime high of Rs 169.05 apiece.
The shares of the company surged 42% over the past five days and above 72% over the past one month.
The total traded volume so far in the day stood at 19.4 times its 30-day average. The relative strength index is at 90.33, implying that the stock overbought.
The two analysts tracking the company maintain a ‘buy’ on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 39.7%.
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