The company after market trading hours announced sale of 27.5 per cent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore.
Reacting to the development, the stock opened on a weak note at Rs 20.40 and then lost further momentum to touch an early low of Rs 20.25 on the BSE.
Similar trend was seen on the National Stock Exchange as well where the stock slipped 10.04 per cent to an early low of Rs 20.15.
"After issue of fresh shares, Wilmar will have 27.5 per cent stake in Renuka Sugars, while promoters stake will also come down to 27.5 per cent," Renuka Sugars Vice-Chairman and Managing Director Narendra Murkumbi had said yesterday.
Renuka would raise another Rs 725 crore from the proposed rights issue in which both existing promoters and Wilmar would participate. The total Rs 1,242 crore raised would be utilised to cut the debt.