Shares of Blue Star Ltd, a multinational home appliances company, witnessing huge buying interest during Tuesday's opening deals, as the stock traded ex-bonus today.

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At 12:12 pm, the scrip was trading 3.99 percent higher at Rs 793 apiece on the NSE. The consumer durable stock has gained 4 percent in trade today, while it was down 48 percent in the last five trading sessions. On a year-to-date basis, the stock tumbled 34 percent.

Blue Star shares turned ex-bonus in the ratio of 1:1 today, which suggests if an existing shareholder already owns one share of the company, the individual will receive one additional new share. Now, the total holding of shares will be two shares instead of one share earlier. Here, new shares are issued at the existing face value of equity shares of the company and that face value remains the same post the bonus issue.

A bonus issue increases number of outstanding equity shares and, thus, liquidity in equity shares on the stock exchanges. It reduces free reserves and surplus of the firm, reduces share price in proportion to number of bonus shares issued and reduces per share ratios.

The company has also fixed Tuesday (June 20) as record date for bonus shares. "We wish to inform you that the company has fixed Tuesday, June 20, 2023 as the record date for ascertaining eligibility of members who shall be entitled for allotment of bonus equity shares in the ratio of 1:1 i.e. 1 (one) equity share of Rs 2/- each for every 1 (one) existing equity share of Rs 2/- each. The above information is also being placed on the website of the company at www.bluestarindia.com. Kindly take the same on record," the company said in a regulatory filing earlier.

Financials

The cooling products maker posted a 195 percent year-on-year rise in net profit at Rs 225.3 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 76.2 crore.

The company's total revenue came in at Rs 2,623.8 crore during the period under review, up 16.4 percent against Rs 2,254.2 crore in the corresponding period of the preceding fiscal.

Promoters held 38.78 percent stake in the company as of March 2023, while FIIs owned 10.45 percent and DIIs 25.11 percent.

Blue Star, incorporated in the year 1949, is a mid-cap company (having a market cap of Rs 7,638 crore) operating in the consumer durables sector.

(Edited by : C H Unnikrishnan)

First Published:Jun 20, 2023 12:42 PM IST