ICRA assigns Grade 3 to BGR Energy Systems IPO
Rating agency ICRA assigned an IPO Grade 3, indicating average fundamentals, to the proposed IPO of BGR Energy Systems Ltd.
By PTI |
NEW DELHI: Rating agency ICRA on Wednesday assigned an IPO Grade 3, indicating average fundamentals, to the proposed IPO of BGR Energy Systems Ltd.
The grading reflects the company's track record in implementing Balance of Plant (BOP) contracts for power projects and its strong order book position, besides the favourable prospects for its business in the power sector, ICRA said in a release.
It also takes due note of the fact that despite moderate profit margins, the company's returns on capital employed and on net worth have remained strong (24.2 per cent and 39.3 per cent respectively, in 2006-07) because of the low fixed-capital intensity of its business.
The grading is however constrained by the increasing competitive pressures from both domestic and international players in all of the company's business segments, it said.
The grading reflects the company's track record in implementing Balance of Plant (BOP) contracts for power projects and its strong order book position, besides the favourable prospects for its business in the power sector, ICRA said in a release.
It also takes due note of the fact that despite moderate profit margins, the company's returns on capital employed and on net worth have remained strong (24.2 per cent and 39.3 per cent respectively, in 2006-07) because of the low fixed-capital intensity of its business.
The grading is however constrained by the increasing competitive pressures from both domestic and international players in all of the company's business segments, it said.
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