Shree Renuka Sugars gained 2.88% to Rs 23.25 at 09:55 IST on BSE on reports that Singapore-based agribusiness group Wilmar International has initiated talks to buy a majority stake in the sugar refiner.
Meanwhile, the S&P BSE Sensex was down 170.65 points, or 0.8%, to 21,068.71
On BSE, 7.45 lakh shares were traded in the counter as compared with average volume of 9.53 lakh shares in the past one quarter.
The stock hit a high of Rs 23.90 and a low of Rs 23.15 so far during the day. The stock hit a 52-week high of Rs 35.90 on 10 December 2012. It hit a 52-week low of Rs 14.50 on 28 August 2013.
The stock outperformed the market over the past one month till 3 November 2013, surging 11.06% compared with the Sensex's 6.72% rise. The scrip had also outperformed the market in past one quarter, advancing 46.28% as against Sensex's 10.83% rise.
The small-cap sugar company has an equity capital of Rs 67.13 crore. Face value per share is Re 1.
Singapore-based agribusiness group Wilmar International has reportedly initiated talks to buy a majority stake in the sugar refiner Shree Renuka Sugars, which is looking at various options to ease its debt burden. Shree Renuka Sugars had borrowed to part-finance its acquisition of two loss-making sugar companies in Brazil in 2009-10.
A report suggested that negotiations are still at the preliminary stage and might not fructify into a deal, as it is not clear if Shree Renuka Sugars' promoters are interested in selling a majority stake. Earlier it was reported that Shree Renuka Sugars was interested in selling stakes in its Brazilian subsidiaries. A spokesman for Shree Renuka Sugars has denied the claim made in the same report. However, a spokeswoman for Wilmar said that the company does not comment on market speculation and further informed that it constantly looks at opportunities to grow our various businesses, both organically and inorganically. Promoters owned 38.36% stake in Shree Renuka Sugars (as at 30 September 2013).
Shree Renuka Sugars reported a net loss of Rs 63.60 crore in Q1 June 2013 as compared with a net profit of Rs 13.30 crore in Q1 June 2012. Net sales rose 30.6% to Rs 1937.40 crore in Q1 June 2013 cover Q1 June 2012.
Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. It operates eleven mills globally (four in Centre-South Brazil and seven in India) with integrated ethanol and power co-generation capacity. The company also has two large port based sugar refineries in India.
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