GE Power India executed a share purchase agreement with GE Power Systems GmbH for the attainment of legal and beneficial ownership of 50% of the issued and paid up share capital of NTPC GE Power Services (NGSL).
NGSL was included on 27 September 1999 under Companies Act, 1956 and is a 50:50 joint venture between NTPC and GE Power Systems GmbH. NGSL is occupied in the renovation and modernization of existing power plants with primary focus on thermal power plants, and has also endeavoured into supply, installation and subsequent operation & maintenance of thermal
power plants. GE Power India attained 30 lakh equity shares of NGSL from GE Power Systems GmbH constituting 50% of its issued and financial share capital for Rs 7.20 crore.
The acquisition is a related party transaction as the firm and GE Power Systems GmbH are GE Group affiliates. The acquisition is likely to accomplish by 30 April 2021.
During completion of the acquisition of shares from GE Power Systems GmbH, the firm would enter into renovation and modernization of thermal power plants sector and partner with NTPC which is a PSU and a pioneer in thermal power plants. This investment and JV with NTPC is expected to reinforce company's portfolio and open avenues for expanded scope of business for future projects.
GE Power India's consolidated net profit tanked 65.2% to Rs 35.09 crore on a 42.8% surge in net sales to Rs 1,093 crore in Q3 FY21 over Q3 FY20.
GE Power India is engaged in engineering, procurement, manufacturing, construction and servicing etc. of power plants and power gear.
Shares of GE Power India skid 2.30% to Rs 251.10 on BSE. The scrip hit an intraday high of Rs 249.40 and an intraday low of Rs 261.10 so far.
