Blue Star plans to raise Rs 300 crores through the issuance of Non-Convertible Debentures
April, 2020: The Board of Directors of air conditioning and
commercial refrigeration major Blue Star Limited, in its meeting held today,
April 30, 2020, has approved issuance of Non-Convertible Debentures (NCD) up to
Rs 500 crore through private placement on such terms and conditions to be
agreed with the eligible investors. Based on this approval, the Company intends
to issue NCD amounting to Rs 300 crore in the near term to primarily finance
working capital and capital expenditure subject to the terms of the issue.
Mr Vir S Advani, Vice Chairman & Managing
Director adds, “We have always met our working capital as well as capital
expenditure requirements by and large through internal accruals. The current
National Lockdown, especially during the peak summer season, has impacted our
cash flowand consequently the working capital cycle is likely to get lengthened.
We have just resumed production partially in our Wada and Dadra plants and the
other operations are set to resume progressively as and 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 indigenization and backward integration programmes to enhance our
competitiveness and market leadership. 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.”
〰〰〰
