BGR Energy Systems has signed credit lines worth Rs 3,850 crore for execution of EPC contracts of 1,200 megawatts at the Kalisindh Thermal Power Project in Rajasthan. A consortium of eleven banks led by IDBI Bank will arrange the line of credit for the company’s EPC power project contract consisting of Rs 3,296 crore and $450 million.
The contract came from the Rajasthan Rajya Vidyut Utpadan Nigam. The fund arranged in dollar will be utilised for the financing of imported equipments, which has mainly come from
BGR Energy’s current net borrowings stand at Rs 725 crore and this new credit line of Rs 700 crore will be drawn down over 30 months. At CMP of Rs 128, the stock trades at 6.7x its estimated FY10 earnings. We recommend a strong buy on the stock with a price target of Rs 225 for a time horizon 12 to 15 months.crackcrack
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Larsen & Toubro | 3410.15 |
Rail Vikas Nigam | 275.60 |
KEC International | 760.90 |
Kalpataru Projects | 1185.00 |
NCC | 251.05 |
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