GE Steam Power intents to reduce stake in GE Power India; part ways as promoter within 3 years

GE Power India on Wednesday said that GE Steam Power plans to reduce stake and part ways with the company as its promoter within the next three years. GE Power India has received a letter from GE Steam Power on February 8, 2022, wherein the latter has stated its intent to reduce its stake in the company and de-promoterise within 36 months, which will be implemented in a staggered manner, according to a regulatory filing.

GE Steam Power has stated in the letter that this aligns with GE’s previous announcement in September, 2020, to pursue exit from the new-build coal power market.

As per the letter, through this transition, GE intends to strengthen the company to operate independently from GE and achieve its long-term growth plans.

GE intends to engage in discussions with the company to enhance GE Power India’s operational performance and help the company to grow its order book and serve shareholder interests. These steps may inter-alia include IP transfer and support for expansion beyond India, it stated in the letter.

GE Power India stated in the filing that it is examining the implications of the letter. The company will continue to focus its efforts on maintaining its business aligned with market dynamics, it added. For the quarter ended December 2021, GE Steam Power International BV had a 68.58 per cent stake in GE Power India, according to stock exchange data.