Shree Renuka Sugars extends fall ahead of board meet for fund raising

In past one month, the stock zoomed 74% against 4% rise in Sensex till Monday, July 24

Shree Renuka Sugars dipped 8% to Rs 18.70 on BSE in intra-day trade, extending its Wednesday’s 6% decline, ahead of board meeting today to consider fund raising.

“A meeting of the board of directors of the company will be held on Thursday, 27th July, 2017, to consider fund raising, in one or more tranches, that may include further public offer, rights issue, Global Depository Receipts (GDRs), preferential issue or any other method for issuance of equity shares and/or convertible / non-convertible preference shares and/or convertible / non-convertible debentures,” Shree Renuka Sugars said in a regulatory filing.

In past one month, the stock of the country’s largest sugar refiner had outperformed the market by surging 74% from Rs 12.49 on June 26, as compared to 4% rise in S&P BSE Sensex till July 24, 2017.

On Wednesday, the stock hit a 52-week high of Rs 22.40 in intra-day trade with rumours of global agri commodity trader Wilmar International raising its stake in the company.

Singapore-based Wilmar Sugar Holdings, a Wilmar International group company, was roped in by Shree Renuka Sugars in 2014. It acquired 27.24% promoter stake at around Rs 1,200 crore, which reduced the shareholding of the Narendra Murkumbi-led Shree Renuka Sugars promoters to 27.24%, the Business Standard reported. CLICK HERE TO READ FULL REPORT