The Board of Directors of Shree Renuka Sugars Limited (Company) at its meeting held today i.e., Saturday, 23rd September 2023, have approved the proposal for entering into binding agreements for acquisition of 100% of the equity shares of Anamika Sugar Mills Private Limited (Anamika), a sugar manufacturing company located in Uttar Pradesh, India; and, subsequent infusion of up to INR 110 crores in Anamika by way of subscription to equity shares of Anamika for the purpose of redemption of 100% of the outstanding cumulative redeemable preference shares (CRPS) issued by Anamika in favour of SICPA India Private Limited.
Anamika is engaged in the business of cultivation, manufacturing, processing, refining, distribution, marketing and/or trading of sugar and sugar products, byproducts and derivatives of sugar, generation of electricity from sugar byproducts and all activities incidental or necessary. The current crushing capacity of Anamika is around 4000 TCD. The operations of Anamika are limited to India.
The acquisition will help compay to establish presence in Uttar Pradesh, one of the largest sugar producing states, and to cater to the markets of North and East India.
The acquisition of Anamika would enable the Company to gain access to existing sugarcane catchment area with a significant reduction in lead time for setting up the plant in Uttar Pradesh and easy access to skilled/unskilled labour. The Company may expand / alter / modernize the plant based on its need and preference.
Shares of Shree Renuka Sugars Limited was last trading in BSE at Rs. 54.29 as compared to the previous close of Rs. 53.64. The total number of shares traded during the day was 677309 in over 2925 trades.
The stock hit an intraday high of Rs. 54.60 and intraday low of 52.71. The net turnover during the day was Rs. 36449698.00.