Multibagger Power Transmission and Distribution Company Hits Lower Circuit: Here’s Why
According to the regulatory filing, the promoter aims to sell 5.47 per cent of the paid-up equity share capital, equivalent to 14,000,000 shares with a face value of Rs 2, as the base offer size.
Shares of GE Vernova T&D India Ltd were locked in a 5 per cent lower circuit at Rs 1,820.85 on the BSE amid a 0.13 per cent decline in the BSE Sensex, which settled at 80,004.06.
The stock faced selling pressure following the announcement that its promoter, Grid Equipments, plans to offload up to 8.38 per cent stake via an Offer for Sale (OFS).
Details of the OFS
According to the regulatory filing, the promoter aims to sell 5.47 per cent of the paid-up equity share capital, equivalent to 14,000,000 shares with a face value of Rs 2, as the base offer size. This sale is scheduled for November 26, 2024, for non-retail investors and November 27, 2024, for retail investors.
In case of oversubscription, a green shoe option will allow the promoter to sell an additional 2.91 per cent of the paid-up equity share capital. The floor price for the OFS is set at Rs 1,550, representing a 19 per cent discount to the previous close.
As of the September 2024 quarter, Grid Equipments held a 59.08 per cent stake in the company, as per shareholding data on the BSE.
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About the Company
GE Vernova T&D India Ltd is a Small-Cap listed entity of GE’s Grid Solutions business in India. It has been in the power transmission and distribution business for more than 100 years and provides a versatile range of solutions for connecting power generation sources to the grid and evacuating power from them.
Stock Price Performance
GE Vernova T&D India has surged 261.81 per cent year-to-date (YTD), significantly outperforming the Nifty 50, which gained 11.35 per cent in the same period. Over the past year, the company’s share price jumped 346.94 per cent, compared to the 22.14 per cent rise in the Nifty 50. Notably, the stock has delivered multibagger returns of 1,040 per cent over the past five years. The company’s total market capitalization stands at Rs 46,690.09 crore.
Disclaimer: This article is for informational purposes only and not investment advice.