Blue Star Limited Approves Acquisition of Remaining Stake in Blue Star Qatar

Blue Star Limited Approves Acquisition of Remaining Stake in Blue Star Qatar​

Blue Star Limited announced that its Executive Management Committee has approved the proposed acquisition of the remaining 51% shareholding in Blue Star Qatar W.L.L. (BSQ). The acquisition is aimed at simplifying the company's shareholding structure while maintaining control.

The proposal involves Blue Star Limited acquiring the balance 51% stake in BSQ from Al Malki Trading & Contracting Co. (ATC). The acquisition is valued at the face value of Qatari Riyal (QAR) 1,02,000, subject to a fair market valuation carried out according to applicable foreign exchange laws and Reserve Bank of India guidelines. The total consideration for the proposed acquisition is expected not to exceed ₹ 50 lakh.

Rationale and Transaction Background​

BSQ was established as a joint venture between Blue Star Limited and ATC. Initially, the structure saw 49 shares (49% share capital) held by Blue Star Limited and 51 shares (51% share capital) held by ATC.

The company noted that even when initially structured, Blue Star Limited held the majority economic interest. Despite holding 49% of the share capital, the Company was entitled to receive 95% of the dividend. This arrangement was mandatory in 2007 when local Qatari laws required a minimum of 51% shareholding in a Qatari entity to be held by a local Qatari national. This structure ensured BSQ remained a subsidiary of the Company, as per the Companies Act, 2013.

However, recent changes in Qatar's regulatory framework now permit 100% foreign ownership in BSQ’s business line. Consequently, Blue Star Limited proposes acquiring the entire 51% shareholding, including the balance 5% economic interest, held by its local partner, ATC.

Structural Impact and Business Details​

The completion of this acquisition will result in Blue Star Qatar W.L.L. becoming a wholly owned subsidiary of Blue Star Limited, thereby simplifying the ownership structure without altering management control.

BSQ operates in the design, engineering, installation, maintenance, and contracts sector related to mechanical, electrical, and plumbing systems in Qatar.

The Company and ATC established BSQ on February 12, 2007. The total share capital of BSQ is QAR 200,000, divided into 100 shares of QAR 2000 each.

The company provided the following details regarding BSQ’s turnover for the last three financial years:


The acquisition is subject to necessary approvals from various regulatory authorities in both India and Qatar, and the fulfilment of customary closing conditions. The proposed acquisition is expected to be completed within 8 months.

BLUESTARCO Stock Price Movement​

On Tuesday, Blue Star Limited shares edged higher, closing at ₹1682, marking a strong daily gain of 2.83%. The stock traded within a day's range of ₹1633.7 to ₹1694.5, with 409,067 shares changing hands during the session.