Shares of this consumer durable stock jumped 15 percent on Wednesday after the company announced a “Qualified Institutional Placement” (QIP) for debt reduction as well as increasing the growth potential.
With a market capitalization of Rs 17,056.23 crores, the stocks of Blue Star Limited started their trading session on Wednesday at Rs 818.35 and currently trade at Rs 885.45. The scrip witnessed an intra-day high, also the new 52-week high mark, of Rs 920 indicating a gain of 15 percent compared to the previous close of Rs 800 apiece.
Such sharp movements in the stock price were observed after the company, via a regulatory filing with the BSE, announced QIP of up to Rs 1,000 crores. The company has set the floor price to be Rs 784.55 per equity share which is a discount of around 2 percent to Monday’s closing levels.
While announcing the financial results for the quarter ended June 2023, the company’s management approved the raising of funds mentioned above for the purpose of boosting the growth aspirations of the company.
The company expects a double-digit growth for FY23-234. Moreover, the funds will be directed toward reducing the debt levels of the company.
Having a glance at the consolidated financials of the company, the basic business indicators such as the operating revenues and aftertax profits showed positive movements.
The operating revenues went up from Rs 6,064.08 crores during FY21-22 to Rs 7,977.32 crores during FY22-23, and, the after-tax profit numbers took a shift from Rs 168 crores to Rs 401 crores during the same time period.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 38.91 percent stake, and the Foreign Institutional Investors (FIIs) hold a 11.06 percent stake in the company.
Founded in 1943, Blue Star Limited is a company based in India that is associated with air conditioning, ventilation, heating, and commercial refrigeration. The company basically operates through three business segments, i.e., Unitary Products, Professional Electronics & Industrial Systems, Electro-Mechanical Projects & Commercial Air Conditioning Systems.
Written by Amit Madnani
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