BGR Energy Systems share hits 20% upper circuit on winning new orders

Shares of BGR Energy Systems hit 20 per cent upper circuit on the Bombay Stock Exchange on Friday after the company received a Rs 4,442.75 crore order from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).

"We are pleased to inform that on December 12, 2019, the company was awarded a contract by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for execution of 1x660 MW Supercritical Ennore Thermal Power Station Expansion Project under engineering, procurement, and construction (EPC) basis," BGR Energy Systems said in a filing to the Bombay Stock Exchange.

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.

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Boosted by the development, BGR Energy Systems share price rallied as much as 19.93 per cent to touch an intraday high of Rs 35.50 against previous closing price of Rs 29.60 on the BSE. There was surge in trading volume as 0.57 lakh equity shares changed hands on the counter, against a two-week average of around 0.22 lakh shares on the BSE.

"The contract provides for payment in foreign currency for imported items up to USD 114.49 million and adjustment of price due to change in rates of taxes and duties," BGR Energy said in the exchange filing.

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The company's current order book stood at Rs 8,460 crore including this contract.

Edited by Chitranjan Kumar