With the market turning weak, even Offer-for-Sale at a discount to market price to meet SEBI norm on public shareholding appears to be a tough task as experienced by BGR Energy Systems on Monday which did not get enough demand for the shares offered. The stock hit a new 52 week low on Tuesday.

The OFS yesterday by Sasikala Raghupathy, a constituent of the promoter group, who had offered an aggregate 44,22,830 equity shares of Rs 10 each, representing 6.13 per cent of the equity share capital, apparently was not fully absorbed by the market at the floor price of Rs 163 per share fixed by the seller. The share had closed at Rs 169.55 in the normal trading window on NSE yesterday.

In a communication to the stock exchanges today, the company said that according to the SEBI circular, "in case of insufficient demand, the seller has the option to either conclude the sale or cancel it in full".

The company said that "whilst sufficient demand was not received for the sale of shares at or above the floor price of Rs 163 per equity share", the seller shall conclude the sale to the extent of valid orders placed on a price priority basis. However, it was not clear how much of the shares that was on offer under OFS was absorbed by the market.

With the SEBI taking a tough stand on the public shareholding norm, it remained to be seen whether the company would come out with another OFS to comply with it later.

The stock fell to Rs 162, a new 52-week low this morning, before recovering mildly to Rs 164 on the NSE, a loss of Rs 5.55, with a trading volume of 1.48 lakh shares within the first 20 minutes of trading.

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