The initial public offer of BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes, has received powerful response from investors. It got bids for 103 crore shares as against 91.36 lakh equity shares on offer.
The issue was subscribed 112.28 times, till 6 pm, according to data available on NSE website.
Qualified institutional investors have given strong support to the issue, their reserved portion subscribed 19 times followed by HNIs and retail with subscription of 3.4 times and 5.8 times respectively, till yesterday.
The price band is at Rs 425 to Rs 480 per equity share. 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 Mr B G Raghupathy and Ms Sasikala Raghupathy (the selling shareholders).
The net issue to the public will be 8,636,000 equity shares after allowing for reservation of up to 500,000 equity shares for eligible employees. The issue would constitute 12.69% and the net issue will constitute 11.99% of the fully diluted post issue paid-up capital of the company.
SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Private Ltd and CLSA India Ltd are the book running lead managers for the Issue.
The company proposes to utilize the net proceeds of the issue to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East and fund expenditure for general corporate purposes.
The Company proposes to list the equities on the NSE and the BSE.
Source: Moneycontrol.com
Showing posts with label BGR IPO. Show all posts
Showing posts with label BGR IPO. Show all posts
Wednesday, December 12, 2007
Thursday, December 6, 2007
BGR Energy IPO subscribed fully on day one
The IPO of BGR Energy Systems was fully subscribed on the very first day of the opening today. The company is a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, and a provider of turnkey engineering project services engaged in engineering, manufacturing, procuring, constructing and commissioning projects in the power and oil & gas sectors.
The company’s public issue of 9,136,000 equity shares of Rs 10 each in the price band of Rs 425 to Rs 480 closes on December 12, 2007.
SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Private Ltd and CLSA India Ltd are the book running lead managers for the issue.
Source: Moneycontrol.com
The company’s public issue of 9,136,000 equity shares of Rs 10 each in the price band of Rs 425 to Rs 480 closes on December 12, 2007.
SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Private Ltd and CLSA India Ltd are the book running lead managers for the issue.
Source: Moneycontrol.com
Tuesday, December 4, 2007
Apply for BGR Energy with long term view
India Capital Markets has come out with research report on BGR Energy Systems IPO. The firm has advised to subscribe to the issue with a long term view.
BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes to enter the capital markets on December 5, 2007 with a public issue of 9,136,000 equity shares of Rs 10 each through 100% book building process.
The issue closes on December 12, 2007 and the price band has been fixed at Rs 425 to Rs 480 per equity share.
India Capital Markets report on BGR Energy Systems IPO
BGR Energy Systems (BGR) formerly GEA Energy System (India) Pvt. Ltd supplies a range of equipments, systems and services to the power and process industries. It executes power projects, contracts and provides turnkey balance of plant (BOP) Services for the power industry.
It is one of the country's largest engineering, procurement and construction (EPC) provider to power plants and oil & gas units, has chalked out a greenfield and brownfield expansion plan in India and overseas at an outlay of Rs 826 million. The company is now focusing on engineering, procurement and construction services for power plants. It also operates an infrastructure business intended to provide advanced technology services in complex infrastructure projects.
Investment Rationale
Moving up the value chain
The company has expertise in BOP projects and now it’s moving up the value chain and getting into managing EPC contracts for captive power plants. BGR has worked on large sized power plant projects ranging from 100 MW-600 MW. The EPC projects provide higher margin visibility.
Increased focus on Oil & Gas business
BGR intends to capitalize on its experience of working in the oil & gas industry to benefit from the significant investments proposed in gas gathering, liquefaction, storage and transportation projects in India.
Expand its international businesses and operation
The company plans to open marketing office in Dubai to ensure proximity to its clients. It also plans to open manufacturing facilities in Bahrain and China. The company plans to open offices where it can have cost advantage vis-à-vis its competitors. The company is also seeking to identify acquisition targets and joint partners for the same. The company is also planning to increase its exports, as the margins are better in international market.
Operating in high powered Sectors
BGR is operating in high-powered sectors of Power, Captive power, Oil & gas, Refinery, petrochemical and Infrastructure
Concerns
The company is exposed to construction risks for fixed price contracts that could cause them to incur losses
For its fixed price contracts, an increase in the quantity of material, fuel and labor required to execute the project could cause the actual expense to the company for executing the project to vary from the assumptions underlying the bid for such contract, which could expose the company to increased actual costs and reduced profit margins.
BHEL has banned business dealing with the company for 3 years
BHEL by its letter dated 1 March 2006, issued proceeding banning BGR and related companies from business dealings with BHEL for 3 years. The company was alleged for forming a cartel with Techno Electric Engineering Company Ltd to obtain an order from BHEL at a high price.
Outlook & Valuations
BGR’s annualised EPS of Rs 9.76 (based on June quarter EPS) discounts the upper price band by 49x and the lower price band by 44x. The company is moving up the value chain from executing BOP projects to EPC contracts for captive power plants. With the current order book position of Rs 33 bn, which is expected to go up to Rs 200 billion in the next 2-3 years, and with the sunrise sectors it is operating in, the company has a huge potential going forward. We recommend Subscribe to the IPO with a long-term view.
Source: Moneycontrol.com
BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes to enter the capital markets on December 5, 2007 with a public issue of 9,136,000 equity shares of Rs 10 each through 100% book building process.
The issue closes on December 12, 2007 and the price band has been fixed at Rs 425 to Rs 480 per equity share.
India Capital Markets report on BGR Energy Systems IPO
BGR Energy Systems (BGR) formerly GEA Energy System (India) Pvt. Ltd supplies a range of equipments, systems and services to the power and process industries. It executes power projects, contracts and provides turnkey balance of plant (BOP) Services for the power industry.
It is one of the country's largest engineering, procurement and construction (EPC) provider to power plants and oil & gas units, has chalked out a greenfield and brownfield expansion plan in India and overseas at an outlay of Rs 826 million. The company is now focusing on engineering, procurement and construction services for power plants. It also operates an infrastructure business intended to provide advanced technology services in complex infrastructure projects.
Investment Rationale
Moving up the value chain
The company has expertise in BOP projects and now it’s moving up the value chain and getting into managing EPC contracts for captive power plants. BGR has worked on large sized power plant projects ranging from 100 MW-600 MW. The EPC projects provide higher margin visibility.
Increased focus on Oil & Gas business
BGR intends to capitalize on its experience of working in the oil & gas industry to benefit from the significant investments proposed in gas gathering, liquefaction, storage and transportation projects in India.
Expand its international businesses and operation
The company plans to open marketing office in Dubai to ensure proximity to its clients. It also plans to open manufacturing facilities in Bahrain and China. The company plans to open offices where it can have cost advantage vis-à-vis its competitors. The company is also seeking to identify acquisition targets and joint partners for the same. The company is also planning to increase its exports, as the margins are better in international market.
Operating in high powered Sectors
BGR is operating in high-powered sectors of Power, Captive power, Oil & gas, Refinery, petrochemical and Infrastructure
Concerns
The company is exposed to construction risks for fixed price contracts that could cause them to incur losses
For its fixed price contracts, an increase in the quantity of material, fuel and labor required to execute the project could cause the actual expense to the company for executing the project to vary from the assumptions underlying the bid for such contract, which could expose the company to increased actual costs and reduced profit margins.
BHEL has banned business dealing with the company for 3 years
BHEL by its letter dated 1 March 2006, issued proceeding banning BGR and related companies from business dealings with BHEL for 3 years. The company was alleged for forming a cartel with Techno Electric Engineering Company Ltd to obtain an order from BHEL at a high price.
Outlook & Valuations
BGR’s annualised EPS of Rs 9.76 (based on June quarter EPS) discounts the upper price band by 49x and the lower price band by 44x. The company is moving up the value chain from executing BOP projects to EPC contracts for captive power plants. With the current order book position of Rs 33 bn, which is expected to go up to Rs 200 billion in the next 2-3 years, and with the sunrise sectors it is operating in, the company has a huge potential going forward. We recommend Subscribe to the IPO with a long-term view.
Source: Moneycontrol.com
Monday, December 3, 2007
Subscribe to BGR Energy Systems IPO
BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes to enter the capital markets on December 5, 2007 with a public issue of 9,136,000 equity shares of Rs 10 each through 100% book building process.
The issue closes on December 12, 2007 and the price band has been fixed at Rs 425 to Rs 480 per equity share.
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 Mr B G Raghupathy and Ms Sasikala Raghupathy (the selling shareholders).
The net issue to the public will be 8,636,000 equity shares after allowing for reservation of up to 500,000 equity shares for eligible employees. The issue would constitute 12.69% and the net issue will constitute 11.99% of the fully diluted post issue paid-up capital of the company. SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Private Ltd and CLSA India Ltd are the book running lead managers for the Issue.
The company proposes to utilize the net proceeds of the issue to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East and fund expenditure for general corporate purposes. The Company proposes to list the equities on the NSE and the BSE.
BGR Energy Systems has entered into agreements dated November 6, 2007 with certain investors for a placement of 2,880,000 equity shares and a transfer by its promoter of 1,440,000 equity shares. The company proposes to complete the above transaction after the closing of the issue period and before the allotment of equity shares in the issue to successful bidders. Upon the determination of the issue price, the objects of the issue will be reduced to the extent of moneys raised from the of 2,880,000 equity shares placement.
The company carries on business in two segments, the supply of systems and equipment and turnkey engineering project contracting.
Source: Moneycontrol.com
The issue closes on December 12, 2007 and the price band has been fixed at Rs 425 to Rs 480 per equity share.
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 Mr B G Raghupathy and Ms Sasikala Raghupathy (the selling shareholders).
The net issue to the public will be 8,636,000 equity shares after allowing for reservation of up to 500,000 equity shares for eligible employees. The issue would constitute 12.69% and the net issue will constitute 11.99% of the fully diluted post issue paid-up capital of the company. SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, UBS Securities India Private Ltd and CLSA India Ltd are the book running lead managers for the Issue.
The company proposes to utilize the net proceeds of the issue to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East and fund expenditure for general corporate purposes. The Company proposes to list the equities on the NSE and the BSE.
BGR Energy Systems has entered into agreements dated November 6, 2007 with certain investors for a placement of 2,880,000 equity shares and a transfer by its promoter of 1,440,000 equity shares. The company proposes to complete the above transaction after the closing of the issue period and before the allotment of equity shares in the issue to successful bidders. Upon the determination of the issue price, the objects of the issue will be reduced to the extent of moneys raised from the of 2,880,000 equity shares placement.
The company carries on business in two segments, the supply of systems and equipment and turnkey engineering project contracting.
Source: Moneycontrol.com
Thursday, November 29, 2007
Subscribe to BGR Energy IPO
Pranav Securities (P-sec) has come out with report on BGR Energy Systems IPO. The firm has recommended to subscribe the issue.
BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes to enter the capital markets on December 5, 2007 with a public issue of 9,136,000 equity shares of Rs 10 each through 100% book building process.
Pranav Securities report on BGR Energy Systems IPO
* BGR Energy Systems offers products and solutions for the supply of systems & equipment as well as turnkey engineering project contracting catering to the power, oil & gas, refinery and petrochemical industries.
* The company clocked a CAGR of 50.5% for the topline and 50.6% for the bottomline over FY02-07. The company’s margins have been improving from 9.2% in FY03 to 11.06% in FY07 (18 mths).
* The company’s current order backlog stands at Rs 33.2 billion with 76% coming in from the power project business.
* BGR intends to raise money in order to expand its production facilities in India, China and Middle East as well as fund its working capital and general corporate r equirements.
* The issue is priced at 104.42x FY07 and 117.91x FY07 on lower and upper price band respectively. Though a bit expensive we are robust on the industry and believe the company will sustain its growth trend. We recommend Subscribe.
Source: Moneycontrol.com
BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, proposes to enter the capital markets on December 5, 2007 with a public issue of 9,136,000 equity shares of Rs 10 each through 100% book building process.
Pranav Securities report on BGR Energy Systems IPO
* BGR Energy Systems offers products and solutions for the supply of systems & equipment as well as turnkey engineering project contracting catering to the power, oil & gas, refinery and petrochemical industries.
* The company clocked a CAGR of 50.5% for the topline and 50.6% for the bottomline over FY02-07. The company’s margins have been improving from 9.2% in FY03 to 11.06% in FY07 (18 mths).
* The company’s current order backlog stands at Rs 33.2 billion with 76% coming in from the power project business.
* BGR intends to raise money in order to expand its production facilities in India, China and Middle East as well as fund its working capital and general corporate r equirements.
* The issue is priced at 104.42x FY07 and 117.91x FY07 on lower and upper price band respectively. Though a bit expensive we are robust on the industry and believe the company will sustain its growth trend. We recommend Subscribe.
Source: Moneycontrol.com
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