Blue Star shares hit fresh 52-week high on fundraising plan

Shares of Blue Star continued gaining streak for the third straight session on Wednesday, rising over 4% to hit a fresh 52-week high in early trade on the BSE. Investors turned bullish on the stock after it announced to raise ₹1,000 crore via qualified institutional placement (QIP) of shares. The floor price for the QIP has been fixed at ₹784.55 per equity share, a discount of 2% to Monday's closing price of  ₹800 apiece. 

The share price of Blue Star opened higher at ₹818.35, up 2.3% against the previous closing price of ₹800 on the BSE. In the early trade so far, the stock gained 4.4% to hit a fresh 52-week high of ₹835.3, while the market capitalisation rose to ₹16,370 crore.

The shares of home appliances company have risen 60% against its 52-week low of ₹521 touched on September 19, 2022. In the last one year, the counter has climbed 59%, while it surged 45% in the calendar year 2023. The midacap stock has added 20% in six months and 16% in a month.

“The board of directors of the company, at its meeting held on August 3, 2023, and the shareholders of the company, pursuant to the special resolution passed on September 15, 2023, the executive management committee has, at its meeting on September 18, 2023, considered and approved the authorising the opening of the issue on September 18, 2023,” Blue Star says in a BSE filing on Monday.

The board approved the floor price for the issue at ₹784.55 per equity share, “based on the pricing formula as prescribed under the SEBI ICDR Regulations”.

“The company may at its discretion offer a discount of not more than 5% on the floor price so calculated for the Issue. The Issue price will be determined by the Company in consultation with the Book Running Lead Managers appointed for the Issue,” it adds.

The Mumbai-headquartered company further says a meeting of the executive management committee will be held on September 22, 2023, to consider and approve the issue price of the equity shares to be allotted to qualified institutional buyers.

In Q1 FY24, Blue Star reported a 12.13% year-on-year rise in consolidated net profit at ₹83.37 crore on the back of a good performance of its B2B business portfolio even though unseasonal rains impacted residential AC business. The revenue from operations during the quarter stood at ₹2,226 crore, up 12.61% from ₹977.03 crore in the year ago period. The revenue from the electro-mechanical projects and commercial air conditioning systems segment grew 19.12% to ₹949.12 crore in the Q1 FY24.

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