Blue Star plans to raise Rs 300 crore via NCDs to meet expenses

Air-conditioning & commercial refrigeration products maker, Blue Star Ltd, announced that the company is planning to raise Rs 300 crore through the issuance of non-convertible debentures to meet its capital expenditure as well as other expenses after the lockdown.

In a regulatory filing released on Thursday after the market hours, the company informed that its board of directors, in a meeting held on April 30 (Thursday), has approved the issuance of non-convertible debentures (NCDs) amounting to Rs 300 crore in the near-term, on a private placement basis as well as on such terms that may be determined by the board or any other committee, duly constituted by the board, aggregating up to Rs 500 crore.

The company in BSE filing said that its cash flow has been affected by the ongoing nationwide lockdown and so, they need to infuse additional funds to deal with the situation and also, for the company’s growth and business continuity for a year or so.

In addition to this, Blue Star said that the funds, which the company is planning to raise in the month of May, will be used to finance its working capital needs and capital expenditure plans.

The stock market was closed on Friday to commemorate International Workers’ Day. At the time of market closing on Thursday, the stock of Blue Star Ltd was trading at Rs 534.30, up by 0.07 per cent against its previous close of Rs 533.90. Its 52-week high is Rs 887.00 while, its 52-week low is Rs 425.00 on BSE.