Tuesday, January 6, 2009

BGR Energy Fund raising for Working Capital

BGR Energy Systems soared 9.01% to Rs 179.95 at 15:12 IST after the company raised Rs 2,105 crore of loans from banks working capital requirements for a power project at Tamil Nadu.
The stock had risen 2.61% to Rs 164.90 yesterday, 5 January 2009, when the company made the announcement during trading.
The stock hit a high of Rs 182.50 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 913 on 7 January 2008 and a 52-week low of Rs 115 on 2 December 2008.
The mid-cap equipment supplier has an equity capital of Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 179.95 discounts its Q2 September 2008 annualised EPS of Rs 13.16, by a PE multiple of 13.67.
BGR Energy had, in June 2008, bagged a engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB). The company in a stock exchange filing in December 2008, had said that it estimated its fund-based and non-fund based working capital facilities at Rs 2,105 crore for the project and had mandated SBI Capital Markets to arrange the financial facilities.
Under the credit line agreement entered into by the company with the five banks, State Bank of India (SBI) would provide BGR Energy with Rs 525 crore. Besides, the company would receive Rs 580 crore from Indian Overseas Bank, Rs 500 crore from State Bank of Patiala and Rs 250 crore each from Punjab National Bank and Vijaya Bank.
BGR Energy Systems net profit rose 47.8% to Rs 23.69 crore on a 36.5rise in sales to Rs 424.57 crore in Q2 September 2008 over Q2 September 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.

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