Avadh Sugar surges 13% on bonus issue proposal

The board of directors of the company will meet on Monday, May 13, 2019 to consider a proposal for issue of bonus shares.

Avadh Sugar & Energy shares surged 13 per cent to Rs 518 in early morning trade on the BSE on Thursday after the company announced that the board will meet on Monday (May 13) to consider maiden bonus issue.

The company had said, on April 26, that a meeting of the board of directors of the Company will be held on Monday 13th May, 2019 to consider and approve the audited financial statements of the Company for the financial year ended on 31st March, 2019 and to consider recommendation of dividend, if any.

We wish to further inform you that the board of directors will also consider a proposal for issue of bonus shares at the aforesaid meeting, the company said in regulatory filing on Wednesday after market hours.

Meanwhile, analysts at Edelweiss Broking said the sugar prices in India are expected to rise going forward with production almost matching consumption in SY20E. Moreover, sugar prices have already shown some upward trend due to hike in MSP by the government. The brokerage firm believes that ethanol blending will help sugar companies to make higher profit even in a surplus year.

At 10:17 am, Avadh Sugar was trading 10 per cent higher at Rs 508, as compared to  a 0.33 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 224,151 shares changing hands on the NSE and BSE so far.