GE Power India said that it has acquired 50 percent stake in NTPC GE Power Services Pvt Ltd.
Earlier this month, GE Power India's board had approved the acquisition of 50 per cent stake in NTPC GE Power Services Pvt Ltd (NGSL) for Rs 7.2 crore. NTPC and GE Power Systems GmbH had 50 per cent stake each in NGSL. GE Power India completed acquisition of 50% of the issued and paid up share capital of NGSL on 19 April 2021," a BSE filing said.
The acquisition of shares of NGSL from GE Power Systems GmbH is a related party transaction as the company and GE Power Systems GmbH are GE Group Affiliates. The said related party transaction will be at arm's length price.
Upon completion of the acquisition of shares from GE Power Systems GmbH, the company would enter into renovation and modernisation of thermal power plants segment and partner with NTPC Limited, which is a PSU and a pioneer in thermal power plants, the company had said earlier.
This investment and JV with NTPC Ltd is expected to strengthen company’s portfolio and open avenues for expanded scope of business for future projects. NGSL is engaged in the renovation and modernisation of existing power plants with primary focus on thermal power plants, and has also inter-alia ventured into supply, installation and subsequent operation and maintenance of thermal power plants.The authorised share capital of NGSL is Rs 50 crore divided into five crore equity shares of face value of Rs 10 each and the total issued, subscribed and paid-up share capital of NGSL is Rs 60,00,000, as on the date of acquisition.