BGR Energy hits a new low

BGR Energy is not doing well, with the stock having hit a new 52-week low today at Rs.120.55. Ironically, last year on the same day, 5^th July 2012, the company had hit a new 52-week high at Rs.319.55. Changing tides, changing times.

The stock hit the bottom after the company announced yesterday that one of its promoters, Sasikala Raghupathy would sell 21.75 lakh shares of 3% stake today at a minimum price of Rs 118/share. This stake sale is being done to meet the 25% miniumum public shareholding norm of SEBI. Promoters currently hold 78.01% stake in the company. Naturally, the market is not happy as the floor price is at a discount to the current market price.