Genus Power Infra surges on getting nod to merge GPPL with itself

Genus Power Infrastructures is currently trading at Rs 10.84, up by 0.11 points or 1.03% from its previous closing of Rs 10.73 on the BSE.

The scrip opened at Rs 10.95 and has touched a high and low of Rs 11.00 and Rs 10.65 respectively. So far 23718 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 1 has touched a 52 week high of Rs 20.95 on 13-Jan-2011 and a 52 week low of Rs 7.55 on 15-Dec-2011.

Last one week high and low of the scrip stood at Rs 12.50 and Rs 10.06 respectively. The current market cap of the company is Rs 173.05 crore.

The promoters holding in the company stood at 45.54% while Institutions and Non-Institutions held 0.52% and 53.95% respectively.

 Genus Power Infrastructures (GPIL) has received an approval to merge Genus Paper Products (GPPL), housing the paper & boards business, with GPIL and subsequently the non power infrastructure undertaking of GPIL will be demerged into a 100% subsidiary of GPIL, the resulting company. The company has received the board approval for the same.

The above initiative is been taken by Genus group to undertake a group restructuring exercises with an objective to create a pure play power infrastructure company and facilitate expansion of paper business. BMR Advisors acted as the transaction and financial advisors to the transaction.

As per the restructuring proposal, GPIL will house the power infrastructures business including its metering, power T&D management projects and power backup solutions businesses and the resulting company will house the paper and boards business.

Further, the share exchange ratio for the said restructuring exercise for merger will be - twenty four equity share of Re 1 each of GPIL for every hundred equity shares of Re 1 each of GPPL and for demerger will be - one equity share of Re 1 each of the resulting company for every one equity share of Re 1 each of GPIL. The share exchange ratios are based on an independent valuation done by Grant Thornton.

Genus Power Infrastructure is mainly engaged in designing and manufacturing of equipments for power sector. It manufactures high-end programmable multi-functional intelligent Metering Systems, Inverters, Solar Inverters, UPS and Batteries. Genus also undertakes turnkey projects in the power transmission and distribution sector scaling up its operations from meter to metering where it provides complete solutions for power distribution system.