BGR Energy Systems IPO to enter capital market on Dec 5

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Mumbai, Nov 26 (UNI) BGR Energy Systems, a supplier of systems and equipments for power, oil and gas refineries, petrochemicals and process industries, will enter the capital market on December 5 with a public issue of 9,136,000 equity shares of Rs ten each through a 100 per cent book building process.

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

Company CMD B G Rahupathy told mediapersons here today that the net issue to the public will be 8,636,000 equity shares after allowing for reservation of up to 500,000 equity shares for eligible employees. The issue would constitute 12.69 per cent and the net issue will constitute 11.99 per cent of the fully diluted post issue paid up capital of the company.

The Company proposes to utilize the net proceeds of the issue to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and Middle-East and fund expenditure for general corporate purposes.

Mr Rahupathy further said, ''We have executed several balance of plant (BOP) power projects within India, including power projects in Valuthur in Tamil Nadu and Chittorgarh, and Dholpur in Rajasthan and an EPC contract for a power project in Karuppur, Tamil Nadu. We are also executing turnkey BOP coal-fired power projects in Vijaywada and Bhoopalapalli in Andra Pradesh and Khaperkheda in Maharashtra, all three with an output capacity of 500 MW each.'' ''We have commenced basic engineering for a 820 MW gas-based power plant for Konaseema Gas Power in Andra Pradesh and we are executing EPC contracts in Valunthur for a gas-based power plant with an output capacity of 92.2 MW and in Mettur for a coal-based captive power project with an output capacity of 25 MW,'' he informed.

''Our consolidated order backlog as on September 30, 2007 was Rs 33,212 million. Our clients are located in Asia, Middle-East, Africa and Europe. Till today, we have executed 131 contracts in 42 countries. We manufacture certain products related to our business through our subsidiary Progen Systems and Technologies, which has its own manufacturing facility and through our second facility controlled by our air fin coolers business,'' he added.


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