BGR Energy Systems spurts on debut

BGR Energy Systems spurts on debut

BGR Energy Systems was trading at Rs 897.90 on BSE at 10:08 IST, at a premium of 87.06% over IPO price of Rs 480.

Meanwhile BSE Sensex was down 92.32 points or 0.45% to 20369.60.

The stock debuted at Rs 801, a premium of 66.87% over the IPO price. It touched a high of Rs 940 and a low of Rs 801 so far during the day.

On BSE, 11.98 lakh shares were traded on the counter.

The company had priced the IPO at the top end of the Rs 425-480 IPO price band.

At the current price of Rs 897.90, the PE multiple works out to 242.67 based on the 18 months ended March 2007 annualised EPS of Rs 3.70.

BGR Energy Systems IPO had ended on 12 December 2007 with 119.54 times subscription. The qualified institutional buyers (QIBs) category was subscribed 161.67 times, the non institutional investors category was subscribed 153.08 times and the retail investors category was subscribed 46.89 times.

BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.

BGR Energy Systems plans to utilise the IPO proceeds to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East.

The company reported a profit after tax of Rs 39.96 crore on sales of Rs 786.80 crore in the 18 months ended March 2007.