Well theres another good IPO coming on the way from Chennia based BGR Energy systems. It is hitting the market with 91.36lakhs  equity shares of face value Rs10 with a price band of  Rs 425-480 .It has got some plans of setting up manufacturing facilities in India,China and Bahrain in coming 12 months.

The company was set up in 1985 as a join venture between   GEA Energietechnik GmbH, Germany and the promoter of BGR systems Mr. B.G. Raghupathy, to produce and sell On-line Condenser Tube Cleaning Systems, Debris Filters and Rubber Cleaning Balls used in Thermal and Nuclear Power Plants.Its business interest range from power project,oil and gas equipment,Infrastructure,environmental engineering turbine and generator.It has executed 131 projects so far in 42 countries and has a order book of 3,300 crores.The issue has just started today and is closing on Dec 12th.

As the domestic power sector is on a high rise,the company is all set to invest another 3lakh crores  in the next 5 years to add 65,000Mw of capacity.Its sales have risen 77% to Rs 786.8 crores.The net profit is up 97% at Rs40 crore.

Objectives of the issue: To augment long term working capital requirements and to expand  production capacity by establishing manufacturing units in India,China and Middle east.The IPO has got a above average ratings by analysts.The company business and strategy look healthy and  the price band is also reasonable.So we think its another issue to look out for after the MPSEZ issue which gave some very good returns to the investors.

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