Mumbai, March 21: Refrigerator maker Blue Star Ltd is planning to divest its stake in joint venture Yokogawa Blue Star to its partner, Yokogawa Electric Corporation of Japan.
Blue Star board of directors will meet on March 27 to consider the divestment of shares in the joint venture, the company informed the stock exchanges today. In the joint venture, while the Indian promoters hold around 29 per cent, the foreign partner hold close to 40 per cent with over 21 per cent being held by the Indian public. Banks, financial institutions and insurance companies hold 5.44 per cent stake.
As per norms if Blue Star offloads its stake in the joint venture, an open offer from the Japanese partner is likely to follow.
Following the announcement Yokogawa counter witnessed hectic activity with the scrip hitting the 20 per cent upper circuit. At the BSE, it opened at Rs 39.40 and closed at Rs 44.50, a jump of 19.95 per cent over the previous finish. The counter saw 21,596 shares being transacted in 235 trades.
Yokogawa Blue Star is primarily engaged in providing enterprise technology solutions. This covers total plant management and operations which are tailored to the customerís application.
The firm recently reported a turnaround, clocking a net profit of Rs 85 lakh for the quarter ended December 31, as against a loss of Rs 93 lakh in the previous corresponding period, a 191 per cent growth. The net profit for nine months ended December stood at Rs 2.34 crore, vis-à-vis a loss of Rs 1.97 crore in the corresponding previous period.
Net sales during the quarter was lower at Rs 24.88 crore as against Rs 29.09 crore last year due to rescheduling of several orders and contracts to the last quarter.