Equipment supplier BGR Energy today said it has raised Rs 2,105 crore of loan for its working capital requirements from a consortium of five banks, led by public sector giant State Bank of India.
The amount is expected to be used for providing working capital for the Engineering, Procurement and Construction (EPC) contract it has bagged for 600 mega-watt Mettur thermal power project in Tamil Nadu.
The banks that are part of the consortium include Indian Overseas Bank, State Bank of Patiala, Punjab National Bank and Vijaya Bank, the company said in a public announcement of the tie-up of the funds.
The company in a stock exchange filing last month, 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, 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.
Last year in June, the company had bagged a Rs 3,100 crore contract from Tamil Nadu Electricity Board and further estimated that the working capital requirements for the said project would be over Rs 2,000 crore.
BGR Energy surged 6.96 per cent to Rs 171.90 in the afternoon trade on the BSE.
