Shares of GE Power India hit an over eight-year low of Rs 284.50, down 5 per cent on the BSE on Wednesday on growth concerns.
The stock of the power generation equipment maker was trading at its lowest level since December 2011. In the past month, the stock has tanked 35 per cent, as compared to a 6 per cent rise in the S&P BSE Sensex. The stock has corrected 65 per cent from its 52-week high level of Rs 821, touched in February 2020.
On September 21, 2020, General Electric Company (GE), the Ultimate holding company of GE Power India, announced that it intends to exit the new-build coal power market, subject to applicable consultation requirements. GE’s Steam Power business will work with customers on existing obligations as it pursues this exit, which may include divestitures, site closings, job impacts, and appropriate considerations for publicly held subsidiaries.
For the April-June quarter (Q1FY21), GE Power India had posted a loss before tax of Rs 22.6 crore against a loss of Rs 12.2 crore Q1FY20.