Blue Star Limited Completes Final Investment Tranche in Blue Star Climatech

Blue Star Limited has announced the completion of its final tranche of investment in its wholly-owned subsidiary, Blue Star Climatech Limited (BSCL). In a communication dated November 8, 2023, the company detailed its plan to invest up to ₹94.40 crores in BSCL by subscribing to its rights issue. This investment involves purchasing up to 9,44,00,000 equity shares of ₹10 each, at par, in one or more tranches.

The Executive Management Committee of Blue Star Limited’s Board of Directors approved this strategic investment during a meeting on November 8, 2023. This move is part of a broader strategy outlined in the Placement Document dated September 22, 2023, related to the company’s Qualified Institutional Placement (QIP). The primary objectives of this investment include the repayment and prepayment of certain outstanding borrowings and financing BSCL’s expansion plans.

BSCL is actively engaged in the manufacturing of a diverse range of air conditioning systems, commercial refrigeration equipment, cooling appliances, and other related products. For the fiscal year ending March 31, 2023, BSCL reported a turnover of ₹13,937.51 lakhs.

This investment is crucial for BSCL as it aims to strengthen its financial position and support its growth initiatives. By infusing capital, Blue Star Limited will enable BSCL to enhance its operational capabilities and pursue its expansion goals more effectively. The completion of this final tranche signifies a key milestone in the company’s strategic plan to bolster its subsidiary’s financial health and operational efficiency.

Overall, this investment underscores Blue Star Limited’s commitment to supporting its subsidiary’s growth and maintaining a strong position in the air conditioning and refrigeration industry.

About Blue Star Limited

Blue Star manufactures air purifiers, air coolers, water purifiers, cold storage solutions, and speciality products. The company also provides turnkey solutions for MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) projects. Additionally, Blue Star is the largest provider of after-sales service for air conditioning and commercial refrigeration products in the country.

On July 19, 2024, the share price of Blue Star Ltd opened at ₹1,682.10, touching the day’s low at ₹1,650.70, as of 10:27 AM on the NSE.

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