GE T&D India hits 5% lower circuit as promoters consider minority stake sale; check details

In a stock exchange notification issued after market hours on Tuesday, GE T&D India said that its promoters GE Grid Alliance B.V. (formerly Alstom Grid Holding B.V) and Grid Equipments Pvt Ltd are evaluating the possibility of selling a minority stake in the company.

At present, GE Grid Alliance holds 6.46%, and Grid Equipments owns 68.54% of the paid-up share capital of GE T&D India Ltd.

GE T&D India explained the rationale behind the decision, saying that GE Grid Alliance and Grid Equipments are reviewing their shareholding to simplify the promoter group's holding structure.

“….in this regard, (the promoter group) 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,” the notification said.

However, GE T&D India clarified that the promoter group expresses its strong intention to continue as the majority shareholder block of the company. It also said that this letter was “merely an expression of intent and not a binding commitment”.

After the announcement, GE T&D India shares dropped 5% to hit a low of ₹1,717.5 apiece on the National Stock Exchange of India (NSE) on Wednesday. The stock price has skyrocketed in the past one year, surging almost five times compared to ₹350 levels seen a year ago.

Last week, GE T&D India was in the news after it had fixed August 28 as the record date for the dividend payment of ₹2 per share announced on August 12.

Before that, the company had announced a multi-fold jump in its net profit to ₹134.5 crore for the quarter ended June 2024 (Q1FY25) as against ₹28.2 crore in the year-ago quarter. Total income rose to ₹970.1 crore for Q1FY25 compared with ₹729.5 crore in Q1FY24.