Mumbai (Maharashtra) [India], June 1 (ANI): Air conditioning and commercial refrigeration major Blue Star said on Monday it has completed the raising of Rs 350 crore through the private placement of non-convertible debentures (NCDs).
The NCDs will be listed on the wholesale debt market of National Stock Exchange (NSE) of India Ltd.
The NCDs are unsecured and carry a coupon rate of 7.65 per cent with a tenure of three years along with a call option at the end of two years with the company 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.
"The NCD funds will infuse sufficient liquidity into the company and will also provide resilience and necessary financial strength to our balance sheet over the long term," said Vice Chairman and Managing Director Vir S Advani.
"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," he said in a statement.
At 2:50 pm, Blue Star stock was trading 6.23 pc higher at Rs 520 apiece. (ANI)