GE Power India's board on Wednesday permitted the attainment of 50 per cent stake in NTPC GE Power Services Pvt Ltd for Rs 7.2 crore. "Board of directors of GE Power India Ltd in its meeting held today i.e., 14 April, 2021 has approved acquisition of 50 per cent of the issued and paid-up share capital of NTPC GE Power Services Pvt Ltd (NGSL)," a BSE filing stated..
It also said that the expense of acquisition or the price at which the shares are acquired is a cash consideration of Rs 7, 20, 00,000. The acquisition of shares of NGSL from GE Power Systems GmbH is a related party transaction as the firm and GE Power Systems GmbH are GE Group Affiliates. They said related party transaction will be at arm's length price.
Upon achievement of the acquisition of shares from GE Power Systems GmbH, the firm would enter into renovation and modernisation of thermal power plants sector and partner with NTPC Limited, which is a PSU and a forge in thermal power plants.
This investment and JV with NTPC Limited is likely to reinforce company's portfolio and open avenues for expanded scope of business for future projects, it added. The suggestive time period for completion of the acquisition is tentatively by 30 April 2021.
NGSL was integrated on 27 September 1999 under Companies Act, 1956 and is a 50:50 Joint Venture between NTPC Limited and GE Power Systems GmbH. NGSL is engaged in the reformation and modernisation of existing power plants with primary focus on thermal power plants, and has also inter-alia ventured into supply, installation and ensuing 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 Rs10 each and the total issued; subscribed and paid-up share capital of NGSL is Rs 6,000,000, as on the date of acquisition.