BGR Energy

BGR Energy Systems Ltd had filed the DRHP with SEBI on 6^th August 2007 for a total public issue of 13,456, 000 equity shares of Rs10 each of which, it is making a fresh issue of 72,00,000 equity shares of Rs.10 each and is also making an offer for sale of 62,56,000 equity shares by two promoters of the company. The entire funds are to be raised via the book building route. The BRLMs to the issue are SBI Capital Markets, Kotak Mahindra Capital, UBS and CLSA India.

The company started off mainly providing power contracts and turnkey balance for power plants. And now it has shifted its focus area on engineering, procurement and construction services for power plants, providing all under one roof. The company has two manufacturing facilities at Panjetty, Chennai, and Pannamgadu, Nellore.

Originally incorporated in 1985, it was a joint venture between GEA Energetechnik GmbH, Germany and then in 1993, the chief promoter, Mr. B.G. Raghupathy and members of his family became the sole shareholders of the company.

It has executed several BOP power projects within India, including power projects in Valuthur and Karuppur in Tamil Nadu, and Chittorgarh and Dholpur in Rajasthan. Currently, it is executing turnkey BOP coal-fired power projects in Vijayawada and Bhoopalapalli in Andhra Pradesh, both with an output capacity of 500 MW. It has another contract in Valuthur for a gas-based power plant with an output capacity of 92.2 MW. The company's consolidated order backlog as of July 15, 2007 was at Rs. 2165.78 crore.

The objects of the issue is to expand its production base by setting up a facility in Mundra SEZ, estimated to cost Rs.27.19 crore, another facility on Bahrain International Park, costing Rs.33.51 crore and another plant in Langfang in China, to cost Rs.21.89 crore. It has earmarked Rs.82.60 crore towards this expansion. It is also planning to fund its working capital requirement to the tune of Rs.125 crore.

For the year ended 31/03/07, the company posted a sales of Rs.790.28 crore, PBT of Rs.61.28 crore and net profit of Rs.39.96 crore. Post issue, the equity capital is expected at Rs.72 crore and promoter's stake at 81.31%.