This S&P BSE 500 company announced that it is infusing Rs. 49 crore into a subsidiary to repay debt and for expansions. The stock is trading flat on Wednesday at Rs. 896.50 versus Rs. 896.95 at closing on Tuesday.
The stock has been on an uptrend since mid July 2022, rising around 85% since. The stock currently trades 11% and 24% above its 20 day and 200 day moving averages respectively and is 6% away from its 52 week high.
In a filing dated 27th September 2023 Blue Star Ltd stated that upon successful completion of the qualified institutions placement (QIP) it announced in a filing dated September 22, 2023, the company, as a part of the objects of the said QIP, has acquired 4,90,00,000 equity shares of Rs.10 each at par aggregating to Rs 49 crore by way of subscribing to the rights issue of Blue Star Climatech Limited, the wholly owned subsidiary of the Company (BSCL).
The transaction falls within ambit of related party transactions and is at arms’ length. This investment will help BSCL inter alia in repayment and or prepayment, of certain outstanding borrowings and financing the cost towards its expansion plans.
There will be no change in shareholding of the Company in BSCL. BSCL will continue to remain a 100% wholly owned subsidiary of the Company.
BSCL is currently engaged in the business of manufacturing all kinds of air conditioners, commercial refrigeration equipment, cooling appliances and other related products. The turnover of BSCL for FY23 was Rs 139.4 crore.
For all different types of customers, Blue Star offers a large selection of cooling solutions. Additionally, the company engages in the sale of cooling products, packaged air conditioning systems, professional electronics, and industrial systems.
Written by Sandeep R
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