GE T&D Shares Locked In Lower Circuit As Promoters To Sell 11.7% Stake

Shares of GE T&D India Ltd. were locked in the lower circuit after the company announced that its promoters Grid Equipments Pvt. and GE Grid Alliance BV will sell 11.7% stake in the company, through offer for sale with a greenshoe option of 3.9%.

As of quarter ended June 2024, the promoters held a combined stake of 75% in the company. The floor price of the offer shall be Rs 1,400 per share, according to an exchange filing. It will take place on Sept. 19, for non-retail investors and for retail investors it will open on Sept. 20.

The sellers have appointed JPMorgan India Pvt. as their broker.

The base offer size comprises of 3 crore equity shares of face value of Rs 2 each, and greenshoe option of 1 crore equity shares of face value Rs 2 each.

Shares of the company fell as much as 5% to Rs 1,606.85 apiece, the lowest level since Sept. 9. They were locked in the lower circuit limit as of 10:55 a.m., compared to a 0.6% advance in the NSE Nifty 50.

The stock has risen 219% year-to-date and 264.12% in the last 12 months. Total traded volume so far in the day stood at 0.10 times its 30-day average. The relative strength index was at 43.46.

Of the five analysts tracking the company, two maintain a 'buy' rating and three recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 10.3%.