During Wednesday’s morning trading session, the shares of a leading player in the power transmission and distribution business hit a 5 percent lower circuit at Rs. 1,729.85 on BSE, after one of its promoters plans to sell an 8.38% stake worth ~Rs. 3,325 crores in the company via an offer for sale (OFS).
With a market cap of Rs. 45,474 crores, at 01:12 p.m., the shares of GE Vernova T&D India Limited were trading in the red at Rs. 1,776, down by nearly 2.5 percent, as against its previous closing price of Rs. 1,820.85.
What’s the news:
According to the latest regulatory filings with the stock exchanges, GE Vernova’s promoter, Grid Equipments Private Limited, plans to sell an 8.38 percent stake worth ~Rs. 3,325 crores in the company through an offer for sale (OFS). The floor price for the issue has been set at Rs. 1,550 per share.
As per the September 2024 shareholding data available with the BSE, Grid Equipments held around 15.12 crore equity shares, representing a 59.08 percent stake in GE Vernova T&D India Limited.
The OFS will include a base offer of 1.4 crores equity shares (a 5.47 percent stake) for non-retail investors on 26th November, followed by a sale for retail investors on 27th November.
Additionally, there will be an option to sell up to 74.5 lakhs more shares, representing another 2.91 percent of the company’s total issued and paid-up equity share capital.
Previous News:
In September 2024, Grid Equipments Private Ltd and GE Grid Alliance BV (formerly known as Alstom Grid Holding BV) announced a proposed Offer for Sale (OFS), with a floor price set at Rs. 1,400 per share. The OFS aimed to sell up to 11.7 percent of the company’s equity, equivalent to around 3 crore shares.
Additionally, the promoters have included an oversubscription option to sell an extra 3.9 percent of equity, representing 1 crore equity shares, increasing the total sale to 15.6 percent of the company’s paid-up equity, if fully exercised, increasing the total sale size to 4 crore shares.
Financials:
GE Vernova T&D India reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 58.7 percent, rising from Rs. 698 crores in Q2 FY24 to Rs. 1,108 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 37 crores to Rs. 145 crores, representing a growth of around 292 percent YoY.
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Key Financial Ratios:
In terms of key financial metrics, GE Vernova T&D India has a Return on Equity (RoE) of 15.7 percent and a return on capital employed (RoCE) of 23.1 percent. Additionally, the company’s debt-to-equity ratio stands at 0.03.
Stock Performance:
The stock has delivered multibagger returns of nearly 319 percent in one year, while around 32 percent of positive returns in the last six months. So far in 2024, the shares of GE Vernova T&D India have given multibagger returns of about 236 percent.
About the company:
Incorporated in 1957, GE Vernova T&D India Limited, formerly known as GE T&D India Ltd, is engaged in the business of building power transmission and distribution (T&D) infrastructure.
It has a portfolio of products, solutions and services, comprising the entire range of transmission equipment up to Extra and Ultra High Voltages (765 kV and beyond), including air-insulated switchgear (AIS) and locally manufactured power transformers and gas insulated switchgear (GIS).
The company also provides power electronics solutions and advanced power management Smart Grid solutions for T&D including renewable energies integration.
Written by Shivani Singh
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