BGR Energy surges 39% in two days on Rs 4,443 crore contract win

Shares of BGR Energy surged 16 per cent to Rs 41.15 in early morning deals on Monday, thus rallying 39 per cent in the last two trading days after the company won a contract worth of Rs 4,443 crore from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).

In a regulatory filing on Friday, BGR Energy said the company was awarded a contract by Tamil Nadu Generation and Distribution Corporation Limited for the execution of 1x660 MW Supercritical Ennore Thermal Power Station Expansion Project under EPC basis. The total value of the project is Rs 4,442. 75 crore, including all taxes and duties to complete the contract, it said.

The scope of contract includes design, engineering and supply of all equipment, civil works, erection, testing and commissioning of all systems and performance guarantee of power plant.

The overall contract completion period is 36 months from the date of Letter of Intent. The contract provides for payment in foreign currency for imported items up to $114.49 million and adjustment of price due to change in rates of taxes and duties, the company said.

With this contract, the company's current order book stands at Rs 8,460 crore.

The stock hit an all-time low of Rs 28 on November 19, 2019. It hit a 52-week high of Rs 73.25 on March 13, 2019.

The engineering company in power sector had reported a consolidated net loss of Rs 19.37 crore for first half (April-September) of the financial year 2019-20. It posted net profit of Rs 4.82 crore during the same period last fiscal.

At 09:55 am, BGR Energy was trading 13 per cent higher at Rs 40.25 on the BSE, as compared to a marginal 0.03 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 1.61 million equity shares changing hands on the NSE and BSE so far.

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