GE Power India has entered a share purchase agreement with GE Power Systems GmbH to acquire legal and beneficial ownership of 50% of the issued and paid-up share capital of NTPC GE Power Services Ltd (NGSL).

GE Power India acquired 30 lakh equity shares of NGSL from GE Power Systems, constituting 50% of its issued and paid-up share capital for Rs 7.20 crore. The acquisition is a related party transaction as the company, and GE Power Systems GmbH are GE Group affiliates. The acquisition is likely to complete by 30 April 2021.

Upon completing the acquisition of shares from GE Power Systems GmbH, the company would enter into renovation and modernisation of the thermal power plants segment and partner with NTPC. This investment and JV with NTPC is expected to consolidate the company's portfolio and open avenues for expanded scope of business for future projects.

GE Power India's consolidated net profit tanked 65.2% to Rs 35.09 crore on a 42.8% surge in net sales to Rs 1,093 crore in Q3 FY21 over Q3 FY20. GE Power India is engaged in engineering, procurement, manufacturing, construction and servicing of power plants and power equipment.

NGSL was incorporated in September 1999 under the Companies Act, 1956 and is a 50-50 joint venture between NTPC and GE Power Systems GmbH. The company is engaged in the renovation and modernisation of existing power plants with a primary focus on thermal power plants and has also ventured into supply, installation and subsequent operation and maintenance of thermal power plants.

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