The Hindu Business Line : BGR Energy plans to enter capital market

Mr B.G. Raghupathy (right), CMD, BGR Energy Systems Ltd with Mr R. Ramesh Kumar, President, at a press conference to announce the company’s IPO in Mumbai on Monday. —

Our Bureau

Mumbai, Nov. 26 BGR Energy Systems Ltd, a supplier of systems and equipment for the power, oil and gas, refinery, petrochemical and process industries, proposes to enter the capital market with an initial public offering of 91.36-lakh equity shares of face value Rs 10 each.

The issue, which is being made through a 100 per cent book building process, opens on December 5 and closes on December 12. The price band has been fixed at Rs 425-Rs 480. The issue will consist of a fresh issue of 43.20-lakh equity shares and an offer for sale of 48.16-lakh equity shares by promoter, Mr B.G. Raghupathy, and promoter group member Ms Sasikala Raghupathy.

Share for employees

Of the total issue, 5-lakh equity shares have been reserved for eligible employees. Therefore, the net issue to the public is 86.36-lakh equity shares. The issue will constitute 12.69 per cent and the net issue will constitute 11.99 per cent of the fully diluted post-issue paid-up capital of the company.

The equity shares are proposed to be listed on BSE and NSE. The company plans to raise between Rs 388.28 crore and Rs 438.53 crore, in order to augment long-term working capital requirements and expand production capacity by establishing additional manufacturing facilities.

The company has entered into an agreement with Citigroup Venture Capital for a placement of 28.80-lakh equity shares and a transfer by its promoter of 14.40-lakh equity shares with Reliance Mutual Fund. The book running lead managers to the issue are SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd and CLSA India Ltd.

The basic EPS based on standalone restated financial statements is Rs 3.02 on a weighted average basis with higher weights given to the current year and the diluted EPS is 2.98 — wherein the diluted weighted average EPS takes into account shares issued on conversion of dilutive potential equity shares such as dilutive options and dilutive convertible preference shares.