GE Power India Limited informed on September 18, 2025, that its board of directors has approved a Scheme of Arrangement with JSW Energy Limited. The scheme provides for the demerger and transfer of GE Power India’s Durgapur Facility business, which includes the manufacture and supply of power boiler components, pressure vessels, piping, and coal mills for thermal power plants. The transfer will be implemented as a going concern in line with the provisions of the Companies Act, 2013. A Demerger Co-operation Agreement between the two companies has also been executed.
As consideration for the transfer, shareholders of GE Power India will receive equity shares in JSW Energy. The share entitlement ratio is fixed at ten fully paid equity shares of JSW Energy of ₹10 each for every 139 fully paid equity shares of GE Power India of ₹10 each. This ratio was determined on the basis of valuation reports prepared by RBSA Valuation Advisors LLP and GT Valuation Advisors Pvt Ltd and supported by a fairness opinion from IDBI Capital Markets & Securities Limited.
For the financial year ending March 31, 2025, GE Power India reported revenue of ₹10,471 million and a net worth of ₹2,330.8 million. The Durgapur business recorded revenue of ₹529.5 million, representing 5.1 percent of the company’s total, and a negative net worth of ₹203.5 million, amounting to a negative 8.7 percent contribution.
The scheme is subject to approval by shareholders and creditors of both companies, the National Company Law Tribunal, SEBI, stock exchanges, and other relevant authorities. If the demerger cannot be completed under the proposed structure, the agreement provides for an alternative under which JSW Energy would acquire the Durgapur business by way of a slump sale.
JSW Energy, which is engaged in the generation of power and allied activities, reported revenue of ₹12,639.49 crore and profit from operations of ₹1,950.89 crore in FY25, with a paid-up share capital of ₹1,747.77 crore. Its shares are already listed on BSE and NSE, and the new shares to be issued under the scheme will also be listed following receipt of regulatory approvals.