On Friday, July 5, shares of the engineering and construction firm BGR Energy hit a 5% upper circuit at Rs 44.13 a share. In comparison, at 11:10 AM, the BSE Sensex was down 0.45 percent at 79,690.65 marks.
Following the announcement by BGR Energy Systems Ltd. that it intends to raise up to Rs 1,000 crore through a rights issue of equity shares, the stock price increased.
Nonetheless, the July 4 meeting of the company’s board of directors supported the decision.
As per an exchange filing, BGR Energy stated, “We wish to inform you that the Board of Directors of the Company has considered and approved the the offer and issuance of equity shares of face value of Rs 10 each of the company for an aggregate amount, including premium, not exceeding Rs 1,000 crores by way of a rights issue to the eligible equity shareholders of the Company as on the record date (to be determined and notified subsequently), in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, subject to such approvals, as may be required under the applicable laws (Rights Issue).”
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