Triveni Engg expects listing of turbine arm by June-July

NEW DELHI: Triveni Engineering & Industries Ltd (TEIL) today said it expects to list its demerged turbine business, Triveni Turbine Ltd, by June-end or early July.

The company, which will hold a nearly 22 per cent stake in the new entity, said its steam turbines business already has an order book size of Rs 580 crore, totalling 1,000 MW.

"We have submitted the required documents with the regulators and expect to list Triveni Turbine by the end of June or early July," Triveni Engineering & Industries Ltd Chairman and Managing Director Dhruv Sawhney told PTI.

When asked what kind of share valuation he was looking at for the new arm, Sawhney said: "It will be determined by the market forces. I will not speculate."

TEIL shares were trading at about Rs 100 per share before the record date of May 4 for the demerger and have been trading at around Rs 40 since.

In the late afternoon trade today, TEIL's scrip was trading at Rs 35.70, down 2.72 per cent from its previous close on the BSE.

In March last year, TEIL had announced that it would demerge its steam turbine business to unlock shareholder value, tap further growth opportunities and partner global companies.

Under the demerger scheme, shareholders of TEIL will get one share of Triveni Turbines Ltd (TTL) for every share held in the company.

After completion of the demerger, shares of TTL would be listed on the Bombay Stock Exchange and National Stock Exchange.

In April last year, TEIL had formed a joint venture with GE Oil & Gas to design, manufacture, supply, sell and service advanced technology steam turbines in India in the above 30 MW to 100 MW range for power generation applications in the Indian and worldwide markets.

"TTL will hold 50 per cent plus one share in the joint venture with GE -- GE Triveni Ltd," Sawhney said.

The joint venture firm has started bidding for projects across the world and expects to bag projects in India as well as overseas markets in 6-9 months, he added.

Sawhney said TTL will continue to focus on steam turbines in the range of 0-30 MW, while the JV will target its above 30 MW to 100-MW products for power generation applications.