Multibagger GE T&D Locked In Lower Circuit As Promoters Evaluate Minority Stake Sale

Shares of Ge T&D India Ltd. were locked in a 5% lower circuity limit on Wednesday, snapping a three-day rally after its promoters, GE Grid Alliance BV and Grid Equipments Pvt., were evaluating the possibility of a minority stake sale in the company.

GE Grid Alliance B.V., which holds a 6.46% stake in the company, and Grid Equipments Pvt. Ltd., which has a 68.54% stake, are reviewing their shareholding structure to simplify its holding structure, the company said in an exchange filing, citing a letter from its promoters.

"In this regard, we 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," it said.

However, "the promoter group expresses its strong intention to continue as the majority shareholder block of the company," the filing said.

The scrip fell 5% to Rs 1,717.50 apiece, the lowest level since Aug. 14. It was locked in its lower circuit limit, as of 11:41 a.m. This compares to a flat NSE Nifty 50 Index.

The stock has risen nearly 7% following its three-day rally to hit a record high of Rs 1,889.90 apiece on Tuesday. It has surged 241.2% on a year-to-date basis and 419.35% in the last 12 months. Total traded volume on the NSE so far in the day stood at 2.28 times its 30-day average. The relative strength index was at 54.39.

Out of the five analysts tracking the company, two maintain a 'buy' rating, three recommend a 'hold,' and none suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 3.2%.