 "BGR Energy locks in 5% upper circuit on plans to raise up to Rs 1,000 cr")
BGR Energy in focus: Shares of engineering and construction company BGR Energy were locked in 5 per cent upper circuit at Rs 44.13 per share on Friday, July 05. In comparison, BSE Sensex was trading 0.45 per cent lower at 79,690.65 levels, at 11:10 AM.
The uptick in stock price came after BGR Energy Systems Ltd announced that it plans to raise up to Rs 1,000 crore through a rights issue of equity shares.
The decision was, however, approved by the company's board of directors in a meeting held on July 4.
The decision was, however, approved by the company's board of directors in a meeting held on July 4.
In an exchange filing, BGR Energy said, “We wish to inform you that the Board of Directors of the Company has considered and approved the the offer and issuance of equity shares of face value of Rs 10 each of the company for an aggregate amount, including premium, not exceeding Rs 1,000 crores by way of a rights issue to the eligible equity shareholders of the Company as on the record date (to be determined and notified subsequently), in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, subject to such approvals, as may be required under the applicable laws (Rights Issue).”
The board has established a Rights Issue Committee tasked with implementing the Rights Issue. The Committee is authorised to undertake all necessary, appropriate, and desirable actions, as it sees fit, in connection with the rights issue.
Detailed terms concerning the Rights Issue, such as the issue price, rights entitlement ratio, record date, timing, and payment terms, will be finalised in due course, BGR Energy said.
Additionally, the board has also approved the increase in Authorised Share Capital of the Company from Rs 100,00,00,000 (Rupees one hundred crores only) to Rs 1700,00,00,000 (Rupees one thousand seven hundred crores only) and alter the Memorandum of Association of the Company subject to shareholders’ approval.
BGR Energy Systems Limited, headquartered in Chennai, operates within the utility industry, providing a spectrum of services that span from product manufacturing to project execution.
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The company is segmented into capital goods and construction, as well as engineering procurement construction contracts.
The market capitalisation of BGR ENergy is Rs 318.45 crore, according to the Bombay Stock Exchange (BSE).
The 52-week high of the stock is Rs 119.48 per share while it 52-week low is Rs 33.10 per share.