Blue Star is a star today!

Blue Star hit a new 52-week high today at Rs.398 and is currently at Rs.392 levels. Blue Star Infotech, a group company hit was up over 9% intra day at Rs.261 levels.

Both these stocks are up after the company announced yesterday after market hours that the Competition Commission of India (CCI) had approved the scheme of merger of Blue Star Infotech and Blue Star Infotech Business Intelligence & Analytics with Blue Star.

On 14th Dec, Blue Star had received a no objection certificate (NOC) from the BSE and the National Stock Exchange (NSE) for the proposed scheme of merger and on 18th, it had received the approval from the Bombay High Court.

Earlier in Sept, PE Fund Chryscapital-backed Infogain Corp. entered into an agreement with Blue Star Infotech to acquire its information technology (IT) operations; this included its subsidiaries in the US, the UK and Singapore; all for Rs.181 crore.  And it is subsequent to this takeover that this merger is taking place.

The fair value of these net assets to be retained by Blue Star Infotech is expected to be around Rs.98 crore with an enterprise value of around Rs.278 crore.