GE Power India Ltd to acquire 50% stake in NTPC GE Power Services Pvt. Ltd.

The Board of Directors of GE Power India Limited ('the Company') in its meeting held today i.e., 14 April 2021 have approved acquisition of 50% of the issued and paid up share capital of NTPC GE Power Services Private Limited ('NGSL').

NGSL was incorporated on 27 September 1999 under Companies Act, 1956 and is a 50:50 Joint Venture between NTPC Limited and GE Power Systems GmbH. NGSL is engaged in the renovation and modernization of existing power plants with primary focus on thermal power plants, and has also ventured into supply, installation and subsequent operation & maintenance of thermal power plants.

The authorized share capital of NGSL is INR 500,000,000 (Indian Rupees Fifty Crore) divided into 50,000,000 (five crore) equity shares of face value of INR 10 (Indian Rupees Ten) each and the total issued, subscribed and paid-up share capital of NGSL is INR 6,000,000, as on the date of acquisition. The total turnover as of 31 March 2020 is INR 10,265.59 Lakhs.

Upon completion of the acquisition of shares from GE Power Systems GmbH, the Company would enter into renovation and modernization of thermal power plants segment and partner with NTPC Limited which is a PSU and a pioneer in thermal power plants. This investment and JV with NTPC Limited is expected to strengthen Company's portfolio and open avenues for expanded scope of business for future projects.

The cost of the acquisition is INR 72,000,000.

Shares of GE Power India Ltd was last trading in BSE at Rs.261 as compared to the previous close of Rs. 273.5. The total number of shares traded during the day was 7141 in over 499 trades.

The stock hit an intraday high of Rs. 272 and intraday low of 260. The net turnover during the day was Rs. 1876936.

Source : Equity Bulls

Keywords