Stock Market Plunge: Genus Power block deal worth ₹650 crore called off, sources say

Shares of Genus Power Infrastructure Ltd. declined on Friday, June 13, as its stake sale was called off, as per people in the know.

Chiswick Investment Pte. Ltd, an affiliate of Singapore sovereign wealth fund GIC, had launched a block deal to offload a 3.6% stake in Genus Power with an option to increase the sale by an additional 2.2%., sources told CNCB-TV18.

The base deal was valued at approximately ₹400 crore, with an upsize option of ₹250 crore, taking the total potential transaction size to ₹650 crore. The floor price has been set at ₹360 per share, representing a 6.5% discount to the stock’s last closing price, sources added.

Back in July 2023, Genus Power had signed definitive agreements with GIC and its affiliates, through which GIC ha invested a sum of ₹519 crore, to subscribe up to 15% of the company's total equity via warrants.

GIC had also signed an agreement with Genus to set up a platform to undertake advanced metering infrastructure service provider concessions with an initial pipeline and capital outlay of up to $2 billion.

Genus Power had reported a fourth quarter net profit of ₹123 crore, up 24.2$ from the previous year. Its revenue more than doubled to ₹936.8 crore in the fourth quarter from ₹420 crore n the yea-ago period.

Its earnings before interest tax depreciation and amortisation (EBITDA) increased to ₹196.3 crore from ₹51 crore in the same period last fiscal. Its margin expanded by 800 basis points to 20.95% in the March quarter from 12.16% in the year-ago period.

Shares of Genus Power declined 3.9% to hit an intraday low of 369.95 apiece on Friday, June 13. Its shares were down 1.42% at ₹379.65 apiece at 9.45 am. The stock has gained 24.7% in the past month.

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