The drop in the share price of the air conditioner maker came after Oman-based WJ Towell & Co LLC increased the claim to Rs 461.74 crore (earlier Rs 223.60 crore) of its ongoing arbitration proceedings at the International Chamber of Commerce (ICC).
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In an exchange filing, Blue Star said, “The company would like to intimate that while the arbitration proceedings filed against the company with the ICC was for OMR 103,18,000 (approx. Rs 223.60 crore) plus interest at 7 per cent on the total claim amount, the Statement of claim filed by WJT stands at OMR 2,11,80,748 (approx. Rs 461.74 crore).”
Earlier this year in April, WJ Towell & Co LLC (WJT) filed arbitration proceedings against Blue Star with International Chamber of Commerce (ICC) claiming OMR 103,18,000 (approximately Rs 223.6 crore) plus an interest of 7 per cent on the total claim amount, the company revealed.
“The company reiterates that the claims filed by WJT are frivolous, unsubstantiated, premised on fundamental factual misstatements and contrary to the overwhelming facts and evidence,” Blue Star said.
The claims made by WJT will not have any material financial impact on it, the company said based on its assessment.
Blue Star and WJ Towell & Co LLC (WJT) had entered into a shareholders’ agreement on October 1, 2015 for managing affairs of Blue Star Oman Electro Mechanical Company.
Blue Star is a leading manufacturer specialising in air purifiers, air coolers, water purifiers, cold storage, and specialty products.
The company offers comprehensive turnkey solutions in MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) projects, establishing itself as the largest after-sales service provider for air conditioning and commercial refrigeration in India.
Its diverse business segments include Electro-Mechanical Projects, where it handles large-scale AC and ventilation installations, and Commercial Air Conditioning, where it leads in Conventional and Inverter Ducted Systems. Additionally, Blue Star’s unitary products range from air conditioning systems to water purifiers, available through a vast network of over 8,800 outlets across 650 locations.
The company’s clientele include Nippon, Ola Electric Mobility, and Wells Fargo. With a major global presence, Blue Star exports HVACR products to 18 countries in the Middle East, Africa, SAARC, and ASEAN regions. It has also expanded its reach through joint ventures in Qatar and Malaysia, focusing on MEP projects across residential, commercial, and infrastructure sectors.
At 1:51 PM, shares of Blue Star were trading 0.41 per cent lower at Rs 2,090 per share. In comparison, BSE Sensex was down 2.03 per cent at 82,559.80 levels.
First Published: Oct 03 2024 | 2:01 PM IST
