BGR Energy to raise Rs 600 cr through IPO

CHENNAI: BGR Energy Systems, formerly GEA Energy, is planning to take the IPO route this year to raise over Rs 600 crore. The IPO is likely to hit the market by October.

BGR focuses on design, engineering, manufacture and supply of various systems and equipment required for power, oil & gas, refinery, petrochemical and process industries. It also undertakes turnkey, engineering and project contracting for setting up of projects in power and in oil & gas sectors.“We will be offering a little over 1.34 crore shares through the IPO.

These include 72 lakh fresh shares and an offer for sale of 62.56 lakh of existing shares and the offer will be through 100% book-building route,” B G Raghupathy, CMD, BGR Energy Systems told a press conference here on Monday.

The funds from the issue of fresh shares will be utilised to augment long-term working capital requirements, establish manufacturing and assembly facilities among others.
According to him, the company has bagged three power projects, of 500 MW each, on Balance of Plant (BOP) basis, besides an 100-MW gas-based power project on “full EPC” basis. “All these projects are under construction and as of now, our order book is over Rs 3,000 crore,” he said.

Besides implementing projects on BOP and on turnkey basis, the company has also recently obtained a inter-state trading licence in category A to trade in power.