Blue Star surges 15%, hits record high on launch of Rs 1,000 cr QIP issue

The company proposed to raise around Rs 1,000 crore at a floor price of Rs 784.55 per equity share.

Blue Star

SI Reporter Mumbai

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Shares of Blue Star hit a record high of Rs 920, as they surged 15 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes after the leading cooling products maker on Monday launched its qualified institutional placement (QIP) issue. The company proposed to raise around Rs 1,000 crore and fixed a floor price of Rs 784.55 per equity share.

Considering the growth plans and the ensuing capex requirements of the company, the board has approved raising of funds by way of QIP to ensure a balanced and optimum capital structure, Blue Star had said.

The company’s carried-forward order book as of June 30, 2023, grew by 37.4 per cent to Rs 5,359.05 crore, as compared to Rs 3,901.48 crroe as of June 30, 2022. Carried-forward order book as of March 31, 2023, stood at Rs 5,042.27 crore.

While there were fewer than anticipated orders from the commercial buildings sector, the management had said the company continued to witness healthy bookings from the factories and data center sectors driven by the continued thrust of the Government in encouraging manufacturing investments.

The management further said the company also witnessed an uptick in enquiries from the healthcare and hospitality sectors. Additionally, inflow of enquiries and tenders in the railway electrification and metro railway sectors remained buoyant throughout the quarter.

On international business, Blue Star said the business and economic activities in the Middle East markets continued to remain upbeat. With significant growth plans and ensuing policies by the Saudi government, there have been huge investments in the region. Consequently, the company witnessed strong demand for B2B products across territories.

Despite delayed summers, the company said it also witnessed a growth in demand for room air conditioners as compared to last year. The pace of enquiries and order inflows at Qatar continued to remain moderate with economic activities in the country yet to pick up after the FIFA World Cup. The operations of the joint venture at Malaysia are slowly bouncing back after a prolonged slowdown and weak macroeconomic conditions in the country, Blue Star said in Q1FY24 investor update.

First Published: Sep 20 2023 | 10:47 AM IST

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