GE T&D India shares hit their five percent lower circuit, seeing only sellers, as two promoters announced a proposed offer for sale (OFS).
Grid Equipments Private and GE Grid Alliance are planning to sell 11.7 percent of the equity in the company through the OFS route at a floor price of Rs 1,400 per share, the company informed stock exchanges on September 18.
In the event of oversubscription, the OFS has a green shoe option of 3.9 percent of the equity.
At 11.30, GE T&D India shares were quoting Rs 1,606.85 on the NSE, down five percent compared to the previous session's closing price.
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The offer for sale will open today, September 19, with day one for non-retail investors, and day two of the OFS will be open for retail investors as well as those in the non-retail category who choose to carry forward their unallotted bids.
Ten percent of the OFS has been reserved for allocation to retail investors, while at least 25 percent of the issue is reserved for mutual funds and insurance companies.
The value of bids for the retail investor shall be limited to not more than Rs 2 lakh, aggregated across stock exchanges, the company said. The indicative price for the non-retail category shall be conveyed separately.
JPMorgan India has been appointed as the broker to the OFS.
GE Grid Alliance holds 6.46 percent, and Grid Equipments 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'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.
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