JSW Energy’s board has approved a scheme of arrangement for the demerger of GE Power India’s Durgapur facility. This facility manufactures power boilers and related components. JSW Energy will issue 10 equity shares for every 139 shares held in GE Power India. The demerger aims to create operational synergies and reduce reliance on third-party suppliers. The appointed date for the scheme is July 1, 2025.
Demerger Scheme Approved
The board of directors of JSW Energy has given its approval to a scheme of arrangement concerning the demerger of the GE Power India Limited (GEPIL) business. The decision was made at a board meeting held on September 18, 2025. This strategic move involves the demerger of GEPIL’s manufacturing operations related to power boilers and components at its Durgapur facility in West Bengal.
Key Terms of the Demerger
Under the scheme, JSW Energy will issue equity shares to the eligible shareholders of GE Power India. The share entitlement ratio is set at 10 fully paid-up equity shares of JSW Energy for every 139 fully paid-up equity shares held in GE Power India. This ratio is subject to adjustments based on any restructuring of share capital.
Strategic Rationale
The demerger is expected to provide JSW Energy with an opportunity for vertical integration, securing a dedicated boiler parts manufacturing facility. This will reduce dependency on third-party suppliers, create operational synergies, and improve cost efficiencies. The acquisition aligns with JSW Energy’s long-term vision of expanding its energy portfolio and creating value for its shareholders.
Effective Date and Approvals
The appointed date for the scheme is July 1, 2025, or any other date as mutually agreed upon by the boards of directors of both companies. The scheme is subject to necessary regulatory and other approvals, including those from BSE and NSE. JSW Energy will file the scheme with the stock exchanges to obtain their ‘No Objection Letter’.
Source: BSE
