GE Vernova OFS: Promoter To Exercise Oversubscription Option

Grid Equipments Pvt., the promoter of GE Vernova T&D India Ltd. will exercise the oversubscription or greenshoe option in its ongoing offer-for-sale.

An additional 74.51 lakh shares, representing 2.91% of the total paid-up share capital, will be on sale through a separate designated window of the stock exchanges, according to an exchange filing.

The OFS, launched on Tuesday, will 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.

The base offer size is of 1.4 crore shares, equivalent to 5.47% stake in the company. The overall OFS size, including the greenshoe option, is 2.14 crore shares or 8.38% stake.

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

The OFS of GE Vernova was subscribed 3.62 times in the non-retail portion on Tuesday, as per NSE data.

According to Kranthi Bathini, director of equity strategy at WealthMills Securities Pvt, retail investors who are looking at long-term investments will find GE Vernova as a "good buy". The stock has been rallying, he pointed out.

"This is definitely a 'buy' for retail investors, given the kind of momentum which the power sector has seen in recent period. Retail investors will try to buy the shares through the OFS and hold it on a long-term basis," said Bathini.

Shares of GE Vernova hit the lower circuit of 5% and closed at Rs 1,823.5 apiece, compared to 0.11% decline in the benchmark Nifty 50.