BGR Energy Systems shares stuck in upper circuit today, here's why

Shares of engineering and construction major BGR Energy Systems were stuck in the upper circuit of 5% on Friday after the firm said it plans to raise up to Rs 1,000 crore through a rights issue of equity shares. The decision was approved by the company's board of directors in a meeting held on July 4.

BGR Energy Systems shares opened 5% higher and was stuck in the upper circuit of 5% at Rs 42.03 on Friday against the previous close of Rs 42.03 on BSE. Market cap of the firm rose to Rs 318.43 crore. 

"The offer and issuance of equity shares of face value of Rs 10 each of the company (the "Equity Shares") for an aggregate amount, including premium, not exceeding Rs 1000 crore (Rupees One Thousand Crores) by way of a rights issue to the eligible equity shareholders of the Company as on the record date...," said BGR Energy Systems.

In terms of technicals, the relative strength index (RSI) of the BGR Energy Systems stock stands at 59.7, signaling the stock is neither overbought nor oversold on technical charts. BGR Energy Systems shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Shares of BGR Energy Systems have lost 26 per cent in a year and fallen 54.26 per cent in 2024. 

The rights issue will offer equity shares with a face value of Rs 10 each to the eligible equity shareholders of the company as of the record date, which will be determined and notified at a later time.

BGR Energy Systems is a manufacturer of capital equipment for power plants, petrochemical industries, refineries, process industries and undertakes turnkey Balance of Plant ('BOP') and Engineering Procurement and Construction ('EPC') contracts for Power.