Grid Equipment’s OFS opens today company to divest 8.3% stake
Grid Equipment’s, the key promoter of GE Vernova T&D India Ltd, is set to divest up to an 8.38% stake in the company through a strategic offer for sale (OFS) mechanism. The company has outlined a comprehensive share sale plan that will provide investors with an opportunity to participate in the offering.
The OFS will be conducted across two trading days, with a structured approach for different investor categories. On November 26, 2024, non-retail investors will have the first chance to bid during trading hours, with the flexibility to carry forward unallocated bids to the subsequent day. The following day, November 27, 2024, will be dedicated to retail investors and eligible non-retail participants.
Key details of the offer include:
- Symbol: GVTD
- Floor Price: ₹1,550 per share
- Trading Window: BSE and NSE
- Base Offer Size: 1.4 crore shares (5.47% of paid-up equity)
- Oversubscription Option: Up to 74.51 lakh additional shares (2.91% stake)
- Total Potential Share Sale: 2.14 crore shares (8.38% of equity)
- Bidding for non-retail investors: On November 26, non-retail investors can bid during trading hours and carry forward unallocated bids to the next day.
- Bidding for retail investors: On November 27, retail investors and eligible non-retail bidders can participate, with 10% of the offer reserved for retail participants.
Investors interested in participating in this offer should note the trading timings from 09:15 to 15:30 and carefully consider the allocation of shares, particularly the 10% reservation for retail participants.
Allocation methodology for GVTD OFS
The allocation methodology has been designed to ensure fair participation. Non-retail investors will have their bids prioritised at or above the floor price, while retail investors can bid at the cut-off price determined on the first day of the offering. Any oversubscription will be managed proportionally.
RETAIL ALLOCATION
- A retail investor is an individual who bids for offer shares worth up to ₹2 lacs.
- 10% of the Offer Shares shall be reserved for allocation to Retail Investors (“Retail Category”). The stock exchanges will decide the quantity of offer shares eligible to be considered in the retail category, based on the floor price (defined below) declared by the seller.
- In case of oversubscription in the Retail Category, if the aggregate number of Offer Shares bid for at a particular clearing price/Cut-Off Price, as the case may be, is more than the available quantity, then the allocation for such bids will be done on a proportionate basis.
- Retail bids below the cut-off price shall not be considered for allocation.
- Any unsubscribed portion of the retail category shall, after allotment, be eligible for allocation to non-retail investors who have not been allotted offer shares on T Day and have chosen to carry forward their unallotted bids to T+1 Day.
NON-RETAIL ALLOCATION
- The allocation to the non-retail investors shall be at a price equal to the cut-off price or higher as per the bids.
- No single bidder, other than mutual funds and insurance companies, shall be allocated a minimum of 25% of the size of the offer.
- A minimum of 25% of the Offer Shares shall be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the Floor Price (defined below). In the event of any undersubscription by mutual funds and insurance companies, the unsubscribed portion shall be available to other bidders.
ABOUT THE COMPANY
GE T&D India Ltd, now known as GE Vernova T&D India Ltd, is a leading company in the power transmission and distribution sector. The company provides advanced solutions for power management, including transformers, circuit breakers, and substation automation equipment. Promoters of the company include Grid Equipments Private Ltd. and GE Grid Alliance B.V. (formerly Alstom Grid Holding B.V.).
GE Vernova T&D India Ltd has been instrumental in enhancing India’s energy infrastructure, executing numerous projects for central and state utilities as well as private developers.
JP Morgan India has been appointed as the broker to facilitate this transaction. The company has emphasised that this OFS does not constitute a public offer and has advised prospective buyers to meticulously review available information before making bidding decisions.
The OFS provides a good opportunity for investors looking to engage with a prominent player in India’s energy transmission and distribution landscape.
