Hitachi Energy India Ltd has issued a clarification regarding recent media reports about a ₹2,000 crore investment in Chennai. The company has emphasized that this investment is designated for a wholly owned subsidiary rather than the publicly listed entity.

Key Points of Clarification

• Investment Entity: The ₹2,000 crore investment is being made by Hitachi Energy Technology Services Private Limited, a separate legal entity.
• Ownership Structure: Hitachi Energy Technology Services Private Limited is a wholly owned subsidiary of Hitachi Energy Ltd., Switzerland.
• Listed Company Not Involved: Hitachi Energy India Limited, which is listed on Indian stock exchanges, is not directly involved in this investment.

Purpose of the Clarification

The company stated that this clarification was issued to provide transparency about the investment structure and ownership details of the Chennai facility. This move aims to prevent any misinterpretation regarding the listed entity's involvement in the reported initiative.

Media Reports

The clarification comes in response to media articles published on October 16, with the title "Hitachi Energy's next phase in Chennai at ₹2,000 crore to provide 3,000 jobs". These reports appeared in various media platforms, including Business Standard and The Hindu.

Regulatory Compliance

In line with its obligations as a listed company, Hitachi Energy India Limited has formally communicated this clarification to both the BSE Limited and the National Stock Exchange of India Limited. This step ensures that all stakeholders, including investors and regulatory bodies, are accurately informed about the company's operations and investments.

This clarification underscores the importance of clear communication in corporate actions, especially when it involves significant investments and job creation. It also highlights the complex structure of multinational corporations, where subsidiaries and parent companies may have separate legal identities and investment strategies.

Hitachi Energy has made a significant strategic move, with its board approving the demerger of its Durgapur unit to JSW Energy. This decision marks a notable shift in the company's operational structure and assets.

Key Details of the Demerger

• Approval: The board of Hitachi Energy has given its approval for the demerger of the Durgapur unit.
• Recipient: JSW Energy will acquire the demerged unit.
• Transaction Structure: The deal will be executed through a share-swap arrangement.
• Asset Transfer: The transaction involves the transfer of Hitachi Energy's Durgapur operations to JSW Energy.
• Compensation: In exchange for the Durgapur unit, Hitachi Energy will receive shares of JSW Energy.

Implications of the Move

This strategic decision could have several implications for both companies involved:

• For Hitachi Energy: The demerger may allow the company to streamline its operations and focus on core business areas.
• For JSW Energy: The acquisition of the Durgapur unit could potentially expand JSW Energy's operational capacity and market presence.

Market Response

Investors and market analysts will likely be watching closely to see how this demerger affects the financial performance and market positioning of both Hitachi Energy and JSW Energy in the coming months.

The share-swap arrangement suggests that shareholders of Hitachi Energy may receive shares in JSW Energy as part of the deal, though specific details of the share-swap ratio have not been provided in the current announcement.

As this development unfolds, more information may become available regarding the valuation of the Durgapur unit, the share-swap ratio, and the expected timeline for completing the demerger process.

Stakeholders are advised to stay tuned for further announcements from both companies as they work towards finalizing and implementing this significant corporate restructuring.