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KLG Systel Ltd attracted selling pressure on Friday after the company said that its board would meet on April 12 to issue warrants/equity shares to promoters on preferential allotments basis, dealers said.

They said the company had received orders worth Rs 91 crore for rural electrification projects in Rajasthan under the Rajiv Gramin Vidyutikaran Yojna. The move to hike promoters' stake through preferential allotment, before the formal announcement of winning the contract, was against the interest of minority shareholders, they said. The price quoted by KLG Systel for this particular tender was the lowest, they point out.

On the BSE, it declined by over three per cent to Rs 101.50, compared to the previous close of Rs 104.65. On the NSE, the stock ended at Rs 102.60, compared to Wednesday's close of Rs 104.38.

Rajesh Abraham

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KLG Systel: Selling pressure

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