BGR Energy Systems intends to raise ₹1,000 crore through a rights issue, the company said in a notice to the stock exchanges on Thursday. However, the record date for determining the eligible shareholders as well as the entitlement ratio of the issue are yet to be decided.
The company has formed a ‘rights issue committee’ of the Board of Directors to put through the issue. To make the rights issue possible, BGR Energy has also increased the authorised share capital of the company from ₹100 crore to ₹170 crore.
On June 26, the company told the stock exchanges that it intended to “discuss various avenues on raising capital for the operations of the company by various means including Rights/Preferential Issue of Shares/Debentures and creating a separate Committee of Board with terms of reference and appointing relevant consultants for raising of capital.”
BGR Energy is into manufacture and supply of ‘balance of plant’ for power projects. For 2023-24, the company reported sales of ₹1,012 crore and ‘total comprehensive net loss’ of ₹755 crore, compared with turnover of ₹806 crore and loss of ₹487 crore in the previous year.
On the BSE on Thursday, the BGR Energy share of face value ₹10 closed at ₹42.03, which was ₹0.7 (1.69 per cent) higher than the previous close.