BGR Energy electrifies on securing credit lines for a large project

BGR Energy Systems spurted 12.80% to Rs 144.50 on BSE after it secured credit lines worth Rs 3850 crore for execution of a large project.
The company made this announcement during market hours on Monday, 23 March 2009 when the stock jumped 5.35%.
The stock hit a high of Rs 153.70 and a low of Rs 132.10 during the day. The stock hit a 52-week high of Rs 499 on 17 April 2008 and a 52-week low of Rs 107 on 9 March 2009.
The company's current equity is Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 144.50 discounts the company's Q3 December 2008 annualized EPS of Rs 15.12, by a PE multiple of 9.55.
BGR Energy Systems said a consortium of eleven banks led by IDBI Bank will arrange the line of credit for the company's dual currency engineering procurement and construction (EPC) power project contract consisting of Rs 3,296 crore and $450 million. The contract is from the Rajasthan Rajya Vidyut Utpadan Nigam. The funds arranged in dollars will be utilised for the financing of imported equipments, which has mainly come from China, the company's release to stock exchanges said.
BGR Energy Systems said it has mandated IDBI Bank to arrange fund-based facility of Rs 700 crore and non-fund based (bank guarantee and letter of credit) facilities of Rs 3,150 crore.
On 24 February 2009 BGR Energy Systems secured an overseas order worth $8.57 million from State Company of Oil Projects (SCOP), Iraq for supply of 14 floating and fixed-roof steel storage tanks. The contract is to be executed within 12 months.
BGR Energy Systems had in January 2009 secured a line of credit to fund its working capital requirements for a major power project at Tamil Nadu. The company had, in June 2008, bagged an engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB).
BGR Energy Systems' net profit gained 24.7% to Rs 27.21 crore on 23.4% increase in net sales to Rs 472.43 crore in Q3 December 2008 over Q3 December 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.