Grid Equipments to Sell 8.38% Stake in GE Vernova T&D via OFS

Grid Equipments Private Ltd, a promoter of GE Vernova T&D India Ltd, announced plans to sell up to 8.38% of its paid-up equity share capital through an Offer for Sale (OFS) mechanism. The sale, set to take place over two days, will involve a base offer of 1.4 crore equity shares (5.47% of the paid-up equity) with an oversubscription option for 74.51 lakh shares (2.91%), totalling 2.14 crore shares.

Details of the OFS

• Floor Price: The floor price is set at Rs 1,550 per share.
• Face Value: Each share has a face value of Rs 2.
• Dates: The OFS will open for non-retail investors on November 26, 2024, and for retail investors and unallotted non-retail bids on November 27, 2024.

Allocation Strategy

• Non-retail Investors: Will bid on November 26.
• Retail Investors: Can participate on November 27, with 10% of the offer reserved.
• Oversubscription Handling: If demand exceeds supply, shares will be allocated proportionally.

Broker & Advisory

JP Morgan India Pvt Ltd has been appointed as the broker for this transaction. Prospective buyers have been advised to carefully review all public and regulatory disclosures before bidding.

Stock Performance

Shares of GE Vernova T&D India Ltd experienced a 5.00% drop today, trading at Rs.1,823.50, though the stock has surged 245.03% year-to-date and 330.58% over the past year.

In September, Grid Equipments and GE Grid Alliance B.V. had similarly proposed an OFS of 11.7% equity with a green-shoe option for an additional 3.9% stake. The floor price then was Rs 1,400 per share.

As a leading power transmission and distribution solutions provider, GE Vernova T&D India is witnessing good promoter activity with this OFS. With a floor price of Rs 1,550 and potential upside as per market analysts, this development is major.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.