Alstom Projects India (APIL) has received a final approval for the demerger of boiler business of the company into a wholly owned subsidiary of the company - ALSTOM Boilers India (ABIL). The board at its meeting held on October 25, 2011 has approved for the same.
This demerger is subject to requisite consents, approvals, sanctions, permissions and filings with concerned authorities. The appointed date for the proposed scheme of demerger shall be April 01, 2011, or such other date, as the board of the company and ABIL may approve.
Further, on the basis of the valuation undertaken by an independent valuer, the board has granted its final approval to the share swap ratio of 1:1, meaning thereby that every shareholder of the company holding one fully paid-up equity shares of Rs 10 each in the company as on the record date shall, upon sanction of the scheme of demerger and upon it becoming effective, be entitled to receive one fully paid-up equity shares of Rs 5 each in ABIL.
APIL is India’s leading environmental control systems provider with 3 GWs worth of orders, accounting for about 50% market share. The company is well positioned to serve India’s growing hydro needs. Projects currently under execution include the 2000 MW Subansiri Lower hydroelectric power plant in the states of Assam and Arunachal Pradesh, India’s largest hydro project.