Stock Report

TANGEDCO cancels LOI issued to BGR Energy Systems Limited



Posted On : 2021-04-26 12:18:32( TIMEZONE : IST )

TANGEDCO cancels LOI issued to BGR Energy Systems Limited

BGR Energy Systems Limited was earlier awarded a EPC contract by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for execution of of 1x660 MW Supercritical Ennore Thermal Power Station Expansion Project under EPC for Rs.4442.75 Crores.

In continuation of the same, the Company has received a letter dated April 23, 2021 from TANGEDCO that the Letter of Intent (LOI) regarding award of Contract has been cancelled for non submission Bank Guarantees for Security Deposit and Performance Bank Guarantee by the Company and consequential forfeiture of EMD of Rs. 5 Crores.

The Company has moved the Hon'ble High Court of Madras for quashing the said cancellation of LOI and consequent direction to accept Bank Guarantees as per Government of India instructions issued in the wake of the pandemic caused by COVID-19.

Shares of BGR ENERGY SYSTEMS LTD. was last trading in BSE at Rs.42.95 as compared to the previous close of Rs. 42.4. The total number of shares traded during the day was 25994 in over 491 trades.

The stock hit an intraday high of Rs. 44.5 and intraday low of 42.15. The net turnover during the day was Rs. 1126797.

Source : Equity Bulls

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