The Board of Directors of BGR Energy Systems Ltd at their meeting held today through Video Conferencing approved the proposal for sale of entire investment of the Company held in Progen Systems and Technologies Limited ("Progen"), a subsidiary of the Company. The sale comprise of 42,50,000 equity shares constituting 69.67% of the subscribed and paid up capital of Progen. These shares are to be acquired by BGR Investment Holdings Company Limited, a related party. BGR Investment Holdings Company Limited holds the balance 30.33% of Progen.
Until 2015 Progen was carrying on business of manufacture of Welded Fintubes and pressure vessels and thereafter leased its manufacturing facility to the Company. Progen owns a factory comprising of land, building & machineries at Panjetty Village, Ponneri Taluk, Thiruvallur District in Tamil Nadu and the factory has facilities for fabrication of equipment and manufacture of High Frequency Resistance Welded Finned tubes. The proceeds of divestment will be utilized to augment long term financial resources for the Company. Consequently, Progen Systems and Technologies Limited would ceased to be a subsidiary of the Company.
The Consideration received from such sale / disposal is Rs. 43.35 Crores.
Shares of BGR ENERGY SYSTEMS LTD. was last trading in BSE at Rs.22.15 as compared to the previous close of Rs. 20.6. The total number of shares traded during the day was 5676 in over 86 trades.
The stock hit an intraday high of Rs. 22.6 and intraday low of 21. The net turnover during the day was Rs. 122131.