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BGR is building plant at Mundra

Chennai-based BGR Energy Systems Ltd is setting up a manufacturing facility at the Mundra Special Economic Zone (SEZ) at a cost of Rs 27 crore.

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MUMBAI: Chennai-based BGR Energy Systems Ltd, the Rs 125 crore equipment supplier and turnkey project service company, is setting up a manufacturing facility at the Mundra Special Economic Zone (SEZ) at a cost of Rs 27 crore.

B G Raghupathy, chairman and managing director, BGR Energy Systems Ltd, said: “The facility would be used for manufacturing various equipments for power, oil and gas, refinery, petrochemical and process industries.”

With its operations also spread abroad, BGR has also decided to set two more units - one in Bahrain and another in China. “In total, the facilities would accrue an investment of Rs 80 crore approximately,” he said.

Besides, he said, the company is already sitting on an order book of approximately Rs 3,300 crore and is eyeing prospective power projects to the tune of 5,350 MW. Therefore, to raise funds for these plans, BGR has decided to tap the capital market on December 5 with an issue of 9,136,000 equity shares of Rs 10 each via a 100% book building process, he said.

A Swaminathan, president and chief executive officer, power project division, said the issue will consist of a fresh issue of 4,320,000 equity shares and an offer for sale of 4,816,000 equity shares by the selling shareholders. The issue closes on December 12, 2007 and the price band

has been fixed at Rs 425 to Rs 480 per equity share.

The chairman said BGR had been operating in the power segment since its inception in 1985. Over the years it has diversified from offering services to the power sector, to supplying systems and equipment and take up turnkey power contracting.

He said through the issue the company plans to raise approximately Rs 130 crore maximum which it would be investing in its manufacturing facilities. The rest of the money would be utilised to augment long term capital requirements of the company.

He said the company has so far executed power projects to the tune of 135,000 MW and has an eye on another 5,350 MW, which it plans to execute over a period of three to four years. “Though these projects are not in our kitty yet, we are hopeful to bag them based on our excellent track record,” he said.

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