The Board of ABB India Limited (BSE:500002) announced the spin-off of ABB Power Products and Systems India Limited on February 13, 2019. Under the terms, the power grids business of ABB India Limited will be demerged into ABB Power Products and Systems India Limited, which is a newly incorporated wholly owned subsidiary of ABB India Limited. ABB Power Products and Systems India Limited will issue equity shares to the shareholders of ABB India Limited on a pro rata basis such that the shareholding pattern of ABB Power Products and Systems India Limited post the deal will mirror the shareholding pattern of ABB India Limited. Upon the scheme becoming effective, ABB Power Products and Systems India Limited shall issue and allot equity shares to shareholders of ABB India Limited as 1 share each in ABB Power Products and Systems India Limited for every 5 share of ABB India Limited. The shares held by ABB India Limited in ABB Power Products and Systems India Limited will be cancelled upon effectiveness of the scheme. ABB Power Products and Systems India Limited will be listed on the stock exchanges on which the shares of ABB India Limited are listed. Subject to compliance with requisite formalities, the shares of Resulting company i.e. ABB Power Products & Systems India Limited, will be listed on BSE Limited. The shareholding pattern of ABB India Limited will not change pursuant to the deal. The record date is December 23, 2019.

For the financial year 2018, power grid business reported turnover of INR 41.7 billion. The deal is subject to necessary approvals including from the shareholders and creditors of the ABB India Limited and National Company Law Tribunal. As on February 13, 2019, the Board of ABB India Limited granted in-principle approval for the deal. As on March 5, 2019, Board of ABB India Limited approved the deal. The Board of Directors of ABB Power Products and Systems India Limited subsequently also approved the deal on March 5, 2019. As on November 27, 2019, the Bengaluru Bench of the National Company Law Tribunal has approved the deal. The transaction is expected to close in June 2020.