The Hindu : Business : BGR Energy issue opens on Dec. 5

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Tuesday, Dec 04, 2007
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Business

BGR Energy issue opens on Dec. 5

Corporate Reporter

To raise Rs. 438 crore from initial public offer

Fixes price band between Rs. 425 and Rs. 480
Plans additional facilities in India and abroad

CHENNAI: BGR Energy Systems, is entering the capital market with a public issue of 91.36 lakh equity shares of Rs. 10 each through 100 per cent book building process.

The issue will consist of a fresh issue of 43.20 lakh equity shares and an offer for sale of 48.16 lakh equity shares by B.G. Raghupathy, Chairman and Managing Director and Ms. Sasikala Raghupathy.

The issue opens on December 5 and closes on December 12 and the price band has been fixed at Rs. 425-480 per equity share.

BOP concept

Addressing presspersons in connection with the public offer, Mr. Raghupathy said the company was carrying on business in two segments — supply of system and equipment and the implementation of turnkey engineering projects. The company has developed the BOP (balance of the plant) concept to facilitate providers of boilers, turbines and generators to utilise one contract to source large portion of products and services required to complete a power plant. The company is also executing EPC (engineering, procurement and construction) projects.

New Delhi Special Correspondent writes:

On the expansion plans, A. Swaminathan, President and CEO (Power Project Division) said in New Delhi recently the company would enhance its production capacity in various equipment manufacturing units by setting up additional facilities in India, China and Bahrain.

From the proceeds, the company would use Rs. 80 crore to set up plants in the Mundra Special Economic Zone in Kutch, Bahrain International Investment Park and Langfang of China.

Of the total requirement of Rs. 254.50 crore to augment long-term working capital, the company will finance about Rs. 125 crore from the public issue.

The difference between the total cost and the net proceeds of the issue will be met from internal accruals and debt, Mr. Swaminathan said.

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