Blue Star Raises Rs 350 Cr Through Unsecured Non Convertible Debentures Issue
Photo by Jason Briscoe on Unsplash

Blue Star Limited, India’s premier air conditioning and commercial refrigeration player have raised Rs. 350 crores through a private placement of Non-onvertible Debentures (NCDs). The NCDs will be listed on the Wholesale Debt Market of National Stock Exchange of India Limited (NSE). NCDs are unsecured and carry a coupon rate of 7.65% with a tenure of three years along with a call option at the end of two years with the company stake for half of the NCD amount. The proceeds from the issue shall be primarily utilised for financing working capital, and for repayment of existing short term borrowings and business liabilities.

Vir S. Advani, Vice Chairman & Managing Director, Blue Star said,“The business environment has been quite challenging and we are thankful to the NCD investors for reposing trust and confidence in Blue Star despite unpredictable times. The NCD funds will infuse sufficient liquidity into the company and will also provide resilience and necessary financial strength to our balance sheet in the long-term. We expect that as the Government permits economic activities to resume, consumer demand will revive in due course. It is therefore important for us to remain prepared with adequate funding to execute our growth strategy.”

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