Shares of Genus Power Infrastructures experienced a sharp decline of 12.36% on Tuesday, falling to Rs 280. The electrical equipment manufacturer's stock saw an unprecedented trading volume, with 308.94 lakh shares changing hands, amounting to a turnover of Rs 877.82 crore on the BSE.
Block Deal Triggers Market Reaction
The sudden downturn is attributed to a major block deal on the counter. Reports indicate the deal was worth Rs 268 crore, with around 88 lakh shares, or 2.9% of Genus Power's outstanding equity, traded. The average price for this transaction was Rs 285.8 per share.
While the identities of the buyers and sellers have not been officially disclosed, a CNBC TV18 report suggested that GIC was the likely seller. GIC held a 15.1% stake in Genus Power at the close of the March quarter.
Stock Performance and Company Profile
Following the significant sell-off, Genus Power's market capitalization fell to Rs 9014 crore. The stock, which has been a multibagger, hit a 52-week high of Rs 393.61 last August and a 52-week low of Rs 210.49 in February of this year.
Despite Tuesday's slump, Genus Power shares have shown strong performance over recent periods, gaining 38% in the last three months and an impressive 131% over the past three years.
From a technical perspective, the Relative Strength Index (RSI) for Genus Power stands at 49, indicating the stock is neither in the overbought nor oversold zone. The stock exhibits very high volatility, with a one-year beta of 1.46. Currently, it is trading below its 5-day, 10-day, 20-day, 30-day, and 50-day moving averages, but above its 100-day and 150-day averages.
Genus Power is primarily engaged in the manufacturing and provision of metering and metering solutions. The company also undertakes engineering, construction, and contract work on a turnkey basis, operating through two main segments: the Metering business and Strategic investment activities.