Genus Power to Acquire 86.49% Stake in Newlectric Innovation for Rs 25.23 Crore
Genus Power Infrastructures has entered into a Share Purchase Agreement to acquire an additional 86.49% stake in Newlectric Innovation Private Limited (NIPL) for Rs 25.23 crore. NIPL, which manufactures smart electricity meters, will become a wholly-owned subsidiary of Genus Power upon completion. The acquisition is intended to consolidate operations and scale up production capacity to meet the company's growing order book. However, NIPL has shown a significant decline in turnover from Rs 64.24 crore in FY23 to Rs 10.92 crore in FY25, which warrants investor attention.
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Acquisition of 34,36,717 equity shares (86.49%) for a total cash consideration of Rs 25.23 crore.
NIPL will transition from a 13.51% associate holding to a 100% wholly-owned subsidiary.
Target company NIPL is involved in smart meter manufacturing, aligning with Genus Power's core business.
NIPL's turnover has decreased sharply over the last three years: Rs 64.24 Cr (FY23), Rs 43.27 Cr (FY24), and Rs 10.92 Cr (FY25).
The transaction is a related party transaction conducted at arm's length and is expected to close within 30 days.
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Investors should watch for how Genus Power utilizes NIPL's manufacturing capacity to service its massive order book, given NIPL's recent revenue decline. The consolidation is strategically sound for the smart metering segment, but operational turnaround of the target is key.
