Blue Star plans to raise Rs 300 crore through issuance of NCDs
Mumbai (Maharashtra) [India], May 1 (ANI): Air conditioning and commercial refrigeration major Blue Star Ltd is issuing non-convertible debentures (NCDs) up to Rs 300 crore through private placement.
ANI
May 01, 2020 15:12 IST
Mumbai (Maharashtra) [India], May 1 (ANI): Air conditioning and commercial refrigeration major Blue Star Ltd is issuing non-convertible debentures (NCDs) up to Rs 300 crore through private placement.
Its board of directors has approved the proposal but the terms and conditions are yet to be agreed with eligible investors.
The primary intent is to finance working capital and capital expenditure in the wake of COVID-19-led national lockdown.
"We have always met our working capital as well as capital expenditure requirements by and large through internal accruals," said Vice Chairman and Managing Director Vir S Advani.
"The current national lockdown, especially during the peak summer season, has impacted our cash flow and consequently the working capital cycle is likely to get lengthened," he said in a statement.
The company has partially resumed production at Wada and Dadra plants in Gujarat. Other operations are set to resume progressively when the government announces relaxations.
"We foresee demand revival from the second half of the financial year, and it is important to persist with capital expenditure pertaining to indigenisation and backward integration programmes to enhance our competitiveness and market leadership," said Advani.
"Therefore, it is prudent to infuse additional funds through the issuance of NCDs in order to retain adequate liquidity to support business continuity and growth over the next 12 to 18 months."
Blue Star has annual revenues of over Rs 5,200 crore, a network of 32 offices, five manufacturing facilities, 2,800 employees and 2.900 channel partners. (ANI)
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