19 Sep , 2025 By : Debdeep Gupta
The deal will be a share-swap arrangement that will see GEPIL demerge its boiler manufacturing facility in Durgapur to JSW Energy, and the JSW entity will issue 10 equity shares for every 139 shares held by GEPIL shareholders.
JSW Energy, the holding company of JSW Group's power business, will acquire the boiler manufacturing unit of GE Power India (GEPIL) through a strategic demerger, in order to enhance its thermal power business, the company said in an exchange filing, sending the shares modestly higher in a weak market on September 19.
The deal will be a share-swap arrangement that will see GEPIL demerge its boiler manufacturing facility in Durgapur to JSW Energy, and the JSW entity will issue 10 equity shares for every 139 shares held by GEPIL shareholders.
The demerger scheme will help JSW Energy in 'vertical integration' through a dedicated boiler manufacturing facility, reducing dependency on third-party suppliers, and leading to economies of scale, the company said.
The deal will lead to "cost efficiencies, and improving control over critical component requirements of thermal power asset enabling increased production capacity...," said JSW Energy. The move supports future thermal projects of JSW Energy and aligns with the longer term vision of expanding into the energy portfolio, creating value for shareholders, JSW Energy added.
Jefferies has issued a Buy call on JSW Energy and said that the management is anticipating 4.4-4.9 GW power capacity addition in FY26 as against the estimate of 3.1 GW. Morgan Stanley has a Overweight call on JSW Energy wit a target of Rs 659/share.
Shares of JSW Energy are higher by 1.5 percent in early trade on September 19.
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