GE Vernova T&D Seeks Shareholder Nod for ₹1,360 Cr Related Party Deal

Synopsis: GE Vernova T&D India Limited has issued a postal ballot notice seeking shareholder approval for material related party transactions worth up to USD 151 million (approx Rs.1,360 crore) with its fellow GE Vernova group subsidiary, GE Grid Solutions LLC. Transactions that amount to 31.7 percent of the company’s preceding year consolidated turnover require non-related member approval under SEBI’s listing regulations.

A dual-listed power transmission major has moved to clear a regulatory hurdle ahead of what is shaping up to be one of its largest inter-company transaction cycles. The company has dispatched a postal ballot notice to its shareholders via electronic mode, seeking an ordinary resolution to approve the continuation of sale and purchase of goods and services with GE Grid Solutions LLC, incorporated in the United States. Remote e-voting opens April 17, 2026 and runs through May 16, 2026.

With a market capitalisation of Rs. 1,04,210.94 crore, the shares of GE Vernova T&D India Limited were trading at Rs. 4,070 per share, down 1.56  percent from its previous closing price of Rs. 4,134.5 apiece. It is trading at a P/E of 99.12.

The proposed transaction ceiling is USD 151 million, equivalent to roughly Rs. 1,360 crore at the conversion rate of Rs. 90 per dollar. The Board and Audit Committee approved the transaction framework at their meeting on March 18, 2026. Both bodies confirmed the transactions are in the ordinary course of business and priced at arm’s length, benchmarked by an independent transfer pricing consultant under OECD guidelines and the Income Tax Act, 1961.

The scale of this approval tells a story about how quickly GE Vernova T&D’s inter-group activity has expanded. In FY25, total transactions with GE Grid Solutions LLC stood at Rs. 702 million. In just the first nine months of FY26 (April to December 2025), the figure already reached Rs. 963.6 million putting the full-year run rate substantially ahead of the prior year. The proposed ceiling of USD 151 million covers orders to be booked over one year and executed across a two-year window, signalling that management expects this trajectory to continue.

The transactions span both directions: GE Vernova T&D sells its manufactured products including power transformers to GE Grid Solutions LLC for onward supply in overseas turnkey projects, while simultaneously procuring proprietary components and services that can only be sourced from within the GE Vernova group owing to brand specifications and end-customer requirements. The company explicitly notes in the explanatory statement that the components procured from GE Grid Solutions LLC are not fungible with third-party alternatives, which removes any negotiating leverage on the buy side.

Business Overview

GE Vernova T&D India Limited, formerly GE T&D India Limited, has been in the power transmission and distribution business for over 100 years. The company is part of GE Vernova Inc.’s Electrification segment. For FY25, standalone revenue from operations stood at Rs. 4,292 crore, with PAT of Rs. 608 crore, a year in which ROCE reached 54.7 percent and ROE touched 40.4 percent. The nine-month TTM run rate points to revenue of Rs. 5,722 crore, with PAT tracking toward Rs. 1,068 crore.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post GE Vernova T&D Seeks Shareholder Nod for ₹1,360 Cr Related Party Deal appeared first on Trade Brains.