SEBI revokes restrictions against BGR Energy & its Directors, promoters

BGR Energy had opted to divest 44.22 lakh equity shares constituting 6.13% share capital through OFS

The market regulator Securities and Exchange Board of India (SEBI) has revoked its restrictions imposed on BGR Energy Systems as well as their directors and promoters as they have complied with minimum public shareholding norms.

 

BGR Energy had opted to divest 44.22 lakh equity shares constituting 6.13% of the share capital of the company through an Offer for Sale (OFS) on June 3, 2013. However, it was able to sell only 22.47 lakh equity shares and the promoter group could divest only 3.12% stake. Post which, the promoter holding reduced from 81.13% to 78.01%. The company further, to meet the public holding norms, it went for another OFS for 21.75 lakh shares on July 5, 2013, following which the promoters holding was further reduced to 75%, thereby raising the public holding to stipulated 25%.

 

SEBI order stated that the delay in compliance was due to the circumstances beyond the company's control. The company also represented that it is now complaint with the minimum public shareholding norms and requested SEBI to withdraw the directions.

 

The company had definitely delayed in complying with MPS requirement under the SCRR, even when it was under notice for three years for achieving compliance. The company, is therefore, warned for the same and is advised to ensure compliance with the applicable laws and regulations administered by SEBI that govern its activities in the securities market.

 

"Considering the fact the company is now complaint with the stipulated minimum public shareholding level, I do not propose to initate further against the company and tis directors, promoters and promoter group as contemplated," said Prashant saran, whole-time member of SEBI in his Order.