Shares of Triveni Engineering & Industries Ltd. rose as much as 3% on Monday, July 13, after the company fixed July 22, 2026 as the record date for the demerger of its power transmission business. According to reports from CNBC TV18 and Business Standard, eligible shareholders will receive one share of Triveni Power Transmission Ltd. for every three shares of Triveni Engineering held as of the record date. The company had announced the demerger in May, under which its power transmission business will be transferred to Triveni Power Transmission Ltd., currently a wholly owned subsidiary. As per Business Standard, consequent upon the scheme becoming effective, the power transmission business undertaking of the company stood transferred to and vested into TPTL with effect from the Demerger Appointed Date of April 1, 2026.
The power transmission business, which manufactures industrial gears, gearboxes and marine gearing solutions, reported revenue of ₹340 crore for FY26, down 8% from the previous year. As reported by CNBC TV18, the segment maintained a healthy PBIT margin of 35.4% and its order book stood at ₹467 crore at the end of FY26, compared with ₹475 crore a year earlier. Despite the revenue decline, the company noted that overall customer enquiries during FY26 doubled compared with FY25, indicating a healthy demand pipeline. Management attributed the business challenges to temporary headwinds due to the conflict in West Asia, which led to delays in deliveries and slower order finalisation.
According to the company, the restructuring is aimed at improving operational efficiency and competitiveness, while enabling independent value discovery and unlocking value for shareholders by allowing both businesses to operate as separate listed entities. As reported by CNBC TV18, the company expects Triveni Power Transmission Ltd. to be listed by the end of August, subject to regulatory approvals. During the Q4FY26 earnings call, management indicated it expects the power transmission business to continue delivering PBIT margins of around 35%. The scheme of arrangement represents a comprehensive restructuring that will enable the power transmission business to operate independently while maintaining the company's core engineering capabilities.
Recent developments show increased institutional interest in Triveni Engineering, with Fidelity increasing its stake to 9.17% through open market purchases and Axis Mutual Fund raising its stake to 5.04%. The company also announced a bonus issue in the ratio of one share for every two shares held. Additionally, the board approved a ₹600 crore investment for a new manufacturing facility in West Bengal and secured a ₹79.22 crore consultancy contract for the Patna Metro project.
