GE Power India's Durgapur demerger into JSW Energy is sanctioned; record and effective dates are still open

The sanction itself was already known: the company had informed the exchanges on October 1, after market close, that the NCLT had passed the order. The stock closed at ₹706.00 on October 5, the first session after that filing — up 3.5% — and touched ₹730.90 on October 6 before drifting back to ₹649.35 by October 14. Today's intimation adds the certified copy and, with it, the start of the 30-day clock for the Registrar of Companies filing.

The order defines the Demerged Business as "the business of manufacture and supply of power boilers components, pressure vessels, piping, and coal mills for thermal power plant undertaken by the Demerged Company at the Durgapur Facility". The same order's description of GE Power India's business — design, development, engineering, project management, manufacturing, supply, construction, commissioning, repairs and modernization, retrofit and upgrades of boiler, coal mills, pressure vessels, critical piping for steam-turbine applications, steam turbine and generator spares, air-quality control systems, automation systems and power electronics for thermal power plants and industrial application — is a pre-demerger, whole-company description that predates the carve-out and overlaps with the demerged categories (boiler, coal mills, pressure vessels, piping). The pack contains no filing specifying which product lines remain with GE Power India once the Durgapur facility moves to JSW Energy. The scheme's stated rationale is that the demerger lets the demerged company focus on strategic growth areas and its services growth strategy, while JSW Energy — a power generator — gains a dedicated manufacturing facility for boiler pressure parts and reduces dependence on third-party suppliers.

The Appointed Date for the transfer — the date from which the demerged undertaking is treated as vested in JSW Energy — is July 1, 2025, per the order. The ratio adjusts automatically for any share splits, bonuses, buybacks or similar capital restructuring during the pendency of the scheme. What a holder actually receives, and when, depends on the record date the company has yet to announce.

1. 18 Sept

   Boards of both companies approve the Scheme of Arrangement.

2. 1 Apr

   BSE and NSE issue observation letters on the scheme (receipt intimated Apr 2).

3. 2 Jun

   NCLT orders meetings of shareholders and unsecured creditors.

4. 20 Jul

   Meetings held via video conferencing; GE Power India shareholders approve with ~99.99% of valid votes (391 shareholders holding 4,80,58,269 shares).

5. 4 Sept

   Final hearing before the NCLT, Mumbai Bench.

6. 1 Oct

   Order pronounced sanctioning the scheme; company intimates exchanges after market close.

7. 13 Oct

   Certified copy of the order received by the company; filed with exchanges Oct 14. Effective date and record date to follow.

One strand of the order is worth reading closely: the Income Tax Department objected. Its reports questioned the valuation methodology for the Durgapur undertaking — the weightage given to the DCF method, the non-adoption of NAV and cost approaches — and referred to outstanding tax demands against GE Power India. The company responded by affidavit and undertook to discharge all dues arising from ongoing tax proceedings. The tribunal sanctioned the scheme anyway, but expressly left the department at liberty to examine any tax liability arising from it, including whether Section 56(2) of the Income-tax Act applies. The sanction, in other words, settles the corporate-law question while leaving the tax question open — a risk the order itself acknowledges rather than resolves.

At ₹649.35, the stock sits 40.1% below its adjusted 52-week high of ₹1,084 (June 22) and roughly 140% above its 52-week low of ₹270.75 (January 27) — a wide range for one year, and a reminder of how volatile this name is. The initial pop on the sanction has largely retraced: the October 6 close of ₹730.90 gave way to ₹638.45 by October 13 before today's recovery. Whether that retracement reflects the open record date, the tax overhang the order flags, or simply the small-cap tape is not something the filings can answer.

These are whole-company numbers — and that is the analytical gap. Neither the sanction order nor the exchange intimations quantifies the Durgapur business's revenue or profit contribution, so there is no filed basis yet for splitting the ₹4,365 crore market cap between what stays and what moves. The quarterly margin swing — from −4.25% OPM in Q1 FY26 to 33.73% in Q4 FY26 and 14.49% in Q1 FY27 — also makes the retained business's run-rate hard to read from four quarters alone. Until the company files financials that carve out the demerged undertaking, any sum-of-the-parts view is inference, not fact.