GE T&D India announced that from time to time the Company enters into short term, non-exclusive contracts/purchase orders for global engineering services with other companies in the GE Grid Solutions division outside India.
The Company has been formally notified that with effect from 30 June 2021 no new contracts/purchase orders will be issued to it in relation to those services and existing contracts/purchase orders will lapse at their expiry date or be terminated by notice.
The principal impact of the reduction in engineering services orders will be excess capacity in its Global Engineering Operations Division. In order to mitigate the costs, the Company is exploring the possibility of redeployment of the affected employees.
Benchmark indices continued hovering near the day s low in early afternoon trade. The Nifty index slipped below 14,300 level. Barring the Nifty FMCG index, all the sectoral indices on the NSE declined. At 12:20 IST, the barometer index, the S&P BSE Sensex, dropped 391.26 points or 0.80% at 48,643.41. The Nifty 50 index lost 136.40 points or 0.95% at 14,297.30.
In the broader market, the S&P BSE Mid-Cap index fell 1.90% while the S&P BSE Small-Cap index declined 1.82%.
The market breadth was very weak. On the BSE, 698 shares rose and 2,081 shares fell. A total of 141 shares were unchanged.
Derivatives:
The NSE s India VIX, a gauge of market s expectation of volatility over the near term, jumped 4.03% to 24.98. The Nifty 28 January 2021 futures were trading at 14,305.40, at a premium of 8.10 point compared with the spot at 14,297.30.
Read more about Sensex tanks 470 pts; Nifty ends below 14,300 on Business Standard. As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 470.40 points or 0.96% to 48,564.67. The Nifty 50 index lost 152.40 points or 1.06% at 14,281.70.
GE T&D India rose 2.92% to Rs 128.50 after the company agreed to sell its Global Engineering Operations Division to GE India Industrial for a cash consideration of Rs 87.3 crore.
In a filing made on Saturday (16 January 2021), GE T&D India said that it had agreed to sell its Global Engineering Operations Division (India for Global) to GE India Industrial together with the assets and manpower comprised therein alongwith its corresponding liabilities on slump sale basis on an as is where is basis. The company will receive a cash consideration of Rs 87.3 crore on completion of sale of business.
GE T&D India said that the sale would help management to focus on its core business activities besides realizing cash from sale.