The news you’ve shared explains that GE T&D India’s shares experienced a significant drop, reaching a 5% lower circuit on the National Stock Exchange (NSE), due to the promoters selling part of their stake through an Offer for Sale (OFS) mechanism. This means the company’s promoters, Grid Equipments Private Limited and GE Grid Alliance B.V., are offering 11.7% of their stake in the company for sale to public investors via the stock exchange.
Additionally, the promoters have the option to sell an additional 3.9% (10 million shares) if the demand for the shares is higher than expected, or if the initial sale is oversubscribed.
This could explain the drop in share prices, as large stake sales can often create pressure on stock prices, especially when investors anticipate an increase in the supply of shares. The lower circuit limit implies that the stock has dropped by 5% during the day, and the trading has been halted at that point for the day to prevent further volatility.
