BGR Energy to expand capacity; to enter capital market

Chennai, Dec 03 (UNI) BGR Energy Systems Limited, a supplier of systems and equipment for the power, oil and gas refinery, has drawn up plans to expand its production capacity by establishing additional manufacturing facilities in India, China and the Middle East, its Chairman and Managing Director B G Raghupathy said today.

Addressing a press conference here in connection with the company's decision to enter the capital market, he said the proceeds of Rs 428 crore would be utilised to augment the long term working capital requirements and expand the production capacity.

The facility to be set up China would cater to the eastern part of Asia and the plant in Bahrain would cater to north and south America, he said.

As of now, the company has an order book of Rs 3,330 crore, of which 30 per cent would be executed by March next, 60 per cent by March 2009 and the balance of 10 per cent would carried over to the next financial year, he said. The order book included exports to the tune of Rs 600 crore.

Mr Ragupathy said the company proposed to enter the capital market on December five with a public issue of 9,136,000 equity shares of Rs 10 each, through 100 per cent book building process.

The issue would comprise a fresh issue of 4,320,000 equity shares and an offer for sale of 4,816,000 equity shares. The issue would close on December 12 and the price band has been fixed at Rs 425 to Rs 480 per equity share, he added.

The company's prospects, especially in the power sector, was bright as India would be required to set up more power stations.

Power projects for Rs 80,000 crore would be established in the next six months. "Our company will be taking up power projects worth Rs 21,000 crore," he said.

UNI