GE T&D India stock falls 5% to lower circuit as promoters mull paring minority equity stake

GE T&D India stock gains on promoters stake sale plan.

GE T&D India Ltd share price fell as much as 5 percent to lower circuit on Wednesday, 21 August, after the electric equipment company said that the promoter entities are considering selling a minority equity stake, from their combined 75 percent holding now. In the morning trade, GE T&D India was at Rs 1,717. The stock has surged five-fold in the last one year, helped by steady rise in order flow and income.

Earlier, on Tuesday, GE T&D India said that GE Grid Alliance BV and Grid Equipments Pvt Ltd are reviewing their shareholding structure in the company to simplify it. "In this regard, (the promoter group) will evaluate and assess their current shareholding in the Company including evaluating the possibility of a minority stake sale by the Promoter Group in the Company," said GE T&D India in a stock exchange filing.

GE Grid Alliance BV holds 6.46 percent, and Grid Equipments Pvt Ltd holds 68.54 percent equity stake in GE T&D India. The company added that the promoter group "expresses its strong intention" to continue to be the majority shareholder in the company.

In Q1 FY25, GE T&D India Ltd's net profit grew nearly six-fold from a year ago to Rs 134.5 crore; while its revenue expanded 34 percent on-year to Rs 958.3 crore. At the end of the quarter, the company's order backlog was at Rs 6,280 crore, up 59 percent from a year ago. This was helped by a healthy order booking of Rs 1,030 crore during April-June.

GE T&D India's stock has risen 407 percent in the last one year; and 120 percent in the last six months. The surge in the price has taken the stock at a trailing PE (price-to-earnings) multiple of over 161x.