Blue Star board okays proposal to raise Rs 300 crore via NCDs

Air conditioning company, Blue Star Limited, announced that its board has approved the plan of raising Rs 300 crore via non-convertible debentures (NCDs).

In an exchange filing made on Friday during the market hours, Blue Star Ltd said that the debenture committee of the board of directors of the company at its meeting held on May 29, 2020 has approved an issue of 3,000 unsecured, NCDs, having a face value of Rs 10 lakh each for cash, at par, aggregating to Rs 300 crore.

The company also informed that it will have an option to retain oversubscription up to Rs 50 crore, aggregating to Rs 350 crore on a private placement basis. The proceeds are likely to be used for working capital, capital expenditure, bonafide business purpose, repayment of existing liabilities and other issue related expenses.

In addition to this, Blue Star said, “All end use will be for purposes permitted for bank financing by Reserve Bank of India under its extant guidelines.”

Meanwhile, the debentures are proposed to be listed on wholesale debt market (WDM) segment of NSE.

At the time of market closing on Friday, the stock of Blue Star Ltd was trading at Rs 489.50, up by 0.60 per cent against its previous close of Rs 486.60 on BSE.