BGR Energy Systems stock price falls 4% on termination of contract by JUSNL

The fall in BGR Energy Systems stock price came after the company announced that its contract has been terminated by Jharkhand Urja Sancharan Nigam Limited (JUSNL).

BGR Energy Systems stock falls: Stocks of BGR Energy Systems were trading under pressure on Wednesday, August 21, 2024. The stocks dropped as much as 3.54 per cent to hit an intraday low of Rs 45.11 per share. 

The fall in BGR Energy Systems stock price came after the company announced that its contract to supply, install, test and commission 132/33 kV GIS at Sarath, Sundernagar and Chattarpur (Package 04A) has been terminated by Jharkhand Urja Sancharan Nigam Limited (JUSNL).

In an exchange filing, BGR Energy Systems said, “This is to inform that the company has received intimation of termination of contract from Jharkhand Urja Sancharan Nigam Limited (JUSNL Project) with respect to supply, installation, testing and commissioning of 132/33 kV GIS at Sarath, Sundernagar and Chattarpur (Package 04A).”

The contract was terminated due to delay in completion of agreed scope of supply, the company said. However, there is no material impact on the financials and operations or other activities of the company, it added.

Last month, BGR Energy Systems announced that it plans to raise up to Rs 1,000 crore through a rights issue of equity shares. The decision was, however, approved by the company's board of directors in a meeting held on July 4.

BGR Energy Systems Limited, headquartered in Chennai, operates within the utility industry, providing a spectrum of services that span from product manufacturing to project execution. 

The company is segmented into capital goods and construction, as well as engineering procurement construction contracts.

The market capitalisation of BGR Energy Systems is Rs 325.45 crore, according to the Bombay Stock Exchange (BSE).

The 52-week high of the BGR Energy Systems stock is Rs 119.48 per share while its 52-week low is Rs 33.10 per share.

At 11:01 AM, shares of BGR Energy Systems were trading 3.12 per cent lower at Rs 45.31 per share. In comparison, BSE Sensex was trading flat at 80,802.18 levels.