Parent company GE Steam Power has decided to reduce its stake in GE Power India Ltd and eventually “de-promotorise” the Indian company, over the next 36 months.
In a communication to stock exchanges, GE Power India Ltd said that it was in receipt of a letter dated February 8, 2022, to the effect, and that the exercise will be implemented in a staggered manner.
The antecedents of this development can be traced to an announcement by GE in September 2020 of completely exiting the new coal build business. (Read full story)
Through this transition, GE intends to strengthen GEPIL to operate independent of GE, and achieve its long-term growth plans.
GE intends to engage in discussions with GEPIL to enhance the company’s operational performance and help GEPIL to grow its order book and serve shareholder interests.
“These steps may inter-alia include IP (intellectual property) transfer and support for expansion beyond India,” GEPIL said in the stock exchange filing.
GEIPL also said that it is examining the implications of the communication from GE Steam Power, adding that it will continue to focus its efforts on maintaining its business aligned with market dynamics.
Shortly after GE announced its exit from the new coal business globally, in September 2020, T&D India released an “impact analysis” report that may be viewed here.
Promoter holding
According to information filed by GE Power India Ltd on stock exchanges, the company’s foreign promoter “GE Steam Power International BV”, as of December 31, 2021, held 68.58 per cent of the equity capital of GEPIL. It may also be noted that this foreign promoter was previously known as “GE Power India Tracking BV”. The remaining 31.42 per cent of GEPIL’s equity is held by the public.
Featured photograph (soruce: ge.com) relates to GE Power’s flue-gas desulphurization (FGD) business.
