Blue Star QIP issue: What to expect on September 20

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Blue Star shares are likely to be in focus on September 20, 2023, after the company launched a qualified institutional placement (QIP) issue to raise Rs 1,000 crore. The floor price for the QIP is set at Rs 784.55 per share, which reflects a 2 percent discount to Monday’s closing price of Rs 800.05. The company, at its discretion, may offer a discount of not more than 5 percent on the floor price.

The executive management committee of the company will hold a meeting on September 22 to consider the issue price.

The board of the consumer durables company had approved a proposal to raise up to Rs 1,000 crore through QIPs or any other method suitable in one or more tranches during its April-June quarterly results. The fundraising was attributed to funding the company’s growth aspirations.

A part of the funds raised will also be used towards paring some of the company’s debt, as highlighted by Blue Star’s Vice Chairman and Managing Director Vir Advani in an interaction with CNBC-TV18 early in August.

What to expect on September 20

On September 20, investors will be closely watching the following:

  • The issue price of the QIP shares. The issue price will be determined by the executive management committee of the company on September 22.
  • The demand for the QIP shares. The demand for the QIP shares will depend on a number of factors, including the company’s fundamentals, the overall market conditions, and the price of the QIP shares.
  • The impact of the QIP issue on the company’s stock price. If the demand for the QIP shares is strong, it is likely to have a positive impact on the company’s stock price. However, if the demand for the QIP shares is weak, it could put some pressure on the company’s stock price.

Overall, investors should carefully consider all of the relevant factors before making any investment decisions.


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