BGR Energy share price slips over 6%; board approves subsidiary stake sale

BGR Energy Systems share price slipped 6.7 percent intraday on March 30, the day  its board approved a proposal to sell the company's stake in its subsidiary Progen Systems and Technologies.

The sale comprises 42,50,000 equity shares constituting 69.67 percent 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 remaining 30.33% of Progen.

The proceeds of divestment will be utilised to augment long-term financial resources for the company and consequently, Progen Systems would cease to be a subsidiary of the company.

The sale of investment is expected to get completed on or before March 31, 2020 on receipt of sale consideration of Rs 43.35 crore.

At 1412 hours, BGR Energy Systems was quoting at Rs 20.30, down Rs 1.15, or 5.36 percent on the BSE.