The Hindu Business Line : BGR Energy IPO beats issues of over Rs 400 crore

Chennai, Dec. 14 The initial public offering (IPO) of BGR Energy Systems was subscribed by 119.54 times by the closing day of December 12. The issue received total bids for 109.21 crore of equity shares against the offer of 91.36 lakh equity shares. The total demand exceeded Rs 52,000 crore as against the offering of Rs 438 crore, says a company press release.

The IPO opened for subscription on December 5.

The qualified institutional buyers’ portion was subscribed by 161.67 times. There was a mix of foreign institutional investors, domestic institutions, mutual funds, commercial banks and insurance companies. The non-institutional investors’ part was subscribed 153.08 times. The retail individual investors’ portion was subscribed 46.89 times and the employee reservation 1.46 times, the release says.

BGR Energy executes engineering, procurement and construction, and balance of plant (all equipment other than boilers, turbine and generators) for power projects.

Of the 87 IPOs made from January till date, BGR Energy IPO was the Number One in terms of over-subscription in the country for issues of over Rs 400 crore. The issue received more than 8,25,000 bids from retail investors. The issue was managed by SBI Caps, Kotak, UBS and CLSA, the release says.

The IPO was priced at Rs 480 per share of face value Rs 10 each. The company will use the proceeds to set up manufacturing plants in the Mundra multi-product SEZ, in Bahrain International Investment Park and in Langfang, China.

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