BGR Energy plans expansion

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Mumbai, Oct 20: BGR Energy Systems proposes to augment long-term working capital requirements and expand its production capacity by establishing additional manufacturing facilities in India, Longsang, China and Bahrain (International Investment Parks).

To meet the funds requirement for this, the company soon proposes to enter the capital markets with a public issue of 13,456,000 equity shares of Rs 10 each through 100 per cent book building process. The issue will consist of a fresh Issue of 72,00,000 equity shares and an Offer for Sale of 62,56,000 equity shares by the selling shareholders, a company spokesperson said.

The company has already filed DRHP with SEBI for the purpose. The BRLMs for the issue are SBI Capital Markets, Kotak Mahindra Capital Company, UBS Securities India and CLSA India.

The company's business is working capital intensive. It currently owns and operates manufacturing facilities at Panjetty, and other facility through its subsidiary Brogan, both near Chennai.

The company proposes to increase its manufacturing base and capacity by establishing manufacturing facilities for air fin coolers, de-aerators, desalination plants, water treatment plants, effluent treatment plants, gas conditioning skids, pipeline pig launchers and receivers, gas compressor packages, pressure vessels, heat exchangers and finned tubes.

The company has recently secured turnkey contract for the Khaperkheda 500 MW projects of Mahagenco and 800 MW gas, power projects of Konaseema Gas Power Limited BGR Energy's current order backlog is Rs 3600 crore. It manufactures certain products related to its businesses through subsidiary Progen Systems and Technologies Limited (Progen), which has its own manufacturing facility and through its own facility controlled by its air fin coolers business.

The company's clients are located in Asia, the Middle East, Africa and Europe. To date, it has executed 131 contracts in 42 countries outside of India and approximately 760 contracts in India.

UNI

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