BGR raises Rs 190 crores from Citi VC, Reliance MF

BGR Energy Systems has raised Rs 190 crore via pre-initial public offering (IPO) placements from Citi Venture Capital and Reliance Mutual Fund.

The 9.1 million share IPO of the company, a provider of ancillary equipment and turnkey engineering services to power projects, will open on December 5, and has been priced in the band of Rs 425-480 per share.

While Citi Venture has picked up 4% (28.80 lakh shares) at Rs 450 or issue price, Reliance MF has taken 2% (14.40 lakh shares at Rs 450). The pre-IPO shares will have a lock-in of one year from date of allotment.

“We have grown from manufacturing of power equipment to execution of EPC contracts,” said B G Ragupathy, chairman and managing director, BGR.

The Chennai-based company has projects worth Rs 3,330 crore on its order book, and expects to complete about 90% of these contracts by March 2009.