Heavy electrical equipment manufacturer, BGR Energy Systems is set to hit the streets to dilute its promoters holding and there by raise nearly Rs.350 crore.

Sources close to development said that the move aimed at supporting the company's capital expenditure would also bring down promoters' stake to 75% as required by the new official guidelines issued by the market regulator, Securities and Exchange Board of India.

The company is planning to dilute around five to six per cent stake and it has already began its road shows to highlight the upcoming public offer.

However, so far there is no clarity as to what mode the Chennai-based company would take to dilute its stake.

As per sources it could be issuing preferential shares, or a stake sale by promoters. The company is already in talks with a number of foreign investors for raising funds.

As per data available with the Bombay Stock Exchange, promoter's holding in the company is pegged at 81.31 per cent at present and as per the new SEBI rulings, a company needs to have a minimum of 25 per cent float to remain listed at the Indian bourses.