GE Vernova Share Price Hits Lower Circuit After Promoter Launches Offer-For-Sale To Divest Stake

Share price of GE Vernova T&D India Ltd. plunged 5% to hit the lower circuit on Tuesday, after promoter Grid Equipments Pvt. launched an offer-for-sale to divest up to 8.38% stake in the company.

The OFS launched by Grid Equipments Pvt. is scheduled to conclude on Wednesday. The offer will be open for retail investors, along with unallotted non-retail investors, on the second day.

The floor price for the OFS has been fixed as Rs 1,550 per share, which is 15% lower as compared to GE Vernova's current market price.

The base offer size is of 1.4 crore shares, equivalent to 5.47% stake in the company. The promoter entity can also offer an additional 74.51 lakh shares, or 2.91% stake through the greenshoe option. This takes the overall OFS size to 2.14 crore shares or 8.38% stake.

A total of 10% of the offer has been reserved for retail investors, according to a regulatory filing. Retail investors would be considered as individuals who place bids of total value not exceeding Rs 2 lakh.

Among non-retail investors, a minimum of 25% of the OFS shares have been reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price, the filing added.

The stock entered into the lower circuit to trade at Rs 1,823.5 apiece on the NSE, as soon as the session opened. At the same time, the OFS was opened for non-retail investors. The scrip remained locked in the lower circuit as of 1:32 p.m. In comparison, the benchmark Nifty 50 was down by 0.29%.

Shares of the power transmission and distribution solution provider have risen by 262.7% in 2024 so far, and by 330% over the past 12 months.

Among the six analysts tracked by Bloomberg, five have a 'buy' rating on the stock, whereas one suggests a 'hold'. The average of 12-month analysts' price target implies a potential upside of 18.7%.