GE Power India to Demerge Durgapur Business to JSW Energy; Shareholders Get JSW Shares
GE Power India Limited will demerge its Durgapur business to JSW Energy. Shareholders will receive 10 JSW Energy shares for every 139 GEPIL shares held, while retaining their GEPIL shares. The company reported significant financial turnaround, with Net Worth growing to ₹483 crores and EBITDA turning positive at ₹277 crores.
The demerger of a business unit and share swap with another listed entity is a significant corporate action that will directly impact the company's structure and shareholders' equity. The financial turnaround and improved credit rating also indicate a substantial positive shift in the company's standing.
The demerger is presented as a strategic move to simplify the business and enhance shareholder value, with clear benefits outlined for shareholders. The company also highlighted a significant financial turnaround and improved credit rating, indicating positive operational and financial health.
GE Power India Limited (GEPIL) announced the proposed demerger of its Durgapur business unit to JSW Energy Limited. This strategic move aims to simplify GEPIL's portfolio by exiting an underutilized asset and sharpening focus on its core services business.
The Durgapur facility, which manufactures power boiler components, pressure vessels, and pipings, has been underutilized and incurred an average annual loss of approximately ₹27 crores from 2023 to 2025. The demerger is expected to ensure better future utilization of the facility under JSW Energy.
Under the proposed Scheme of Arrangement, GEPIL shareholders will receive 10 fully paid-up equity shares of JSW Energy for every 139 shares held in GEPIL. This transaction ensures that shareholders' existing number of shares in GEPIL will remain unchanged, allowing them to preserve their equity ownership in GEPIL while gaining direct equity participation in JSW Energy. A five-year manufacturing services agreement with JSW Energy has been established to secure capacity for GEPIL's core services business.
The company also highlighted its significant financial turnaround, with Net Worth growing from ₹57 crores in March 2024 to ₹483 crores by March 2026, and liquidity improving from a deficit of ₹66 crores in 2023 to ₹880 crores by March 2026. EBITDA has turned positive, reaching ₹277 crores in FY 2026 from a loss of ₹251 crores in FY 2023. The company's long-term ICRA credit rating has improved to BBB+ with a stable outlook as of June 2026, and a dividend was declared in 2026.
Order bookings for the core services business have grown at a CAGR of approximately 25% from 2021-2022 to 2025-2026, with a 34% growth in FY 2025-2026 compared to the previous year. The other oOEM segment also saw order growth from ₹162 crores to around ₹320 crores.
The Board of Directors has unanimously approved the resolution, and shareholders are invited to vote on the scheme. The business transition is planned to be retrospectively effective from 1st July 2025, upon sanction by the National Company Law Tribunal.
What to do with a filing like this
GE Power India Limited filed this with the NSE as a statutory disclosure, categorised under demerger. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by GE Power India Limited. Read the original for the full detail.