On Thursday’s trade, the share price of this power generation and transmission equipment manufacturer gained 8 percent to ₹645 per share after the company board approved the sale of the Hydro and gas power business by way of slump sale.
At 11:20 a.m., GE Power India Ltd shares were trading ₹639.85 per share, up 7.05 percent on the stock exchange, GE power has a market capitalization of ₹ 4,264 crore.
What News: According to GE Power India’s exchange filing, the Board of Directors of GE Power India Limited approved the sale of two business units the hydropower business and the gas power business during their meeting on July 10, 2024.
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The hydro business, which includes developing, designing, engineering, marketing, manufacturing, selling, supplying, transporting, assembling, installing, and servicing hydro turbines, generators, and associated systems for hydroelectric power stations, will be sold to GE Power Electronics (India) Private Limited.
The gas power business, which encompasses all activities related to gas power plants such as project management, application and detailed engineering services for regional and global projects, and maintenance services for the existing fleet of gas power plants, will be sold to GE Renewable Energy Technologies Private Limited.
The agreement for the sale of the hydro business is expected to be signed around July 15, 2024, with completion projected for the last quarter of FY 2024-25, contingent upon member consent and regulatory approvals. The slump sale will be conducted outside the Scheme of Arrangement.
According to NDTV Profit reports, GE Power India will sell its hydro business units to GE Power Electronics for ₹100.19 crore. The sale is expected to be completed in the last quarter of this fiscal year. Both GE Power India and GE Power Electronics are subsidiaries of the holding company, GE Vernova.
GE Power India will sell its gas power business units to GE Renewable Energy Technologies for ₹43.86 crore, excluding applicable taxes. This sale is expected to be completed by September 2024. GE Renewable Energy Technologies is an indirect, wholly-owned subsidiary of GE Vernova.
About the company: GE Power India, a subsidiary of the multinational General Electric Company, specializes in manufacturing and supplying boilers, mills, air quality control systems, automation and control solutions, and services for steam-powered thermal plants.
As of the fiscal year 2023-24, GE Power India’s order book stood at ₹1,318 crores. In April 2024, the company secured orders worth approximately ₹785 crores from Jaiprakash Power Ventures Limited.
Financials: Looking into GE Power India’s financials, its revenues have increased by 13 percent year on year from ₹344 crore in Q4FY23 to ₹ 391 crore in Q4FY24, while net losses have reduced from ₹ 130 crore to a profit of ₹ 26 crore.
Over the last six months, GE Power India’s shares have gained by 141%, and over the past 12 months, the shares have gained 304%.
Written by Omkar Chitnis
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