Shares of Shree Renuka Sugars fell by over 3 per cent today after the company said its Brazilian subsidiary filed for bankruptcy protection as its operations were hit by a crash in sugar prices in the last two years.
The stock went down 3.10 per cent to settle at Rs 7.49 on BSE. During the day, it lost 5.43 per cent at Rs 7.31.
On NSE, shares of the company dropped 3.24 per cent to Rs 7.45 at close.
In terms of volume, 8.65 lakh shares of the company changed hands at BSE and over 39 lakh at NSE during the day.
Renuka Sugars had in 2010 forayed into Brazil, the world's largest sugar producer, by investing Rs 1,765.10 crore to acquire stakes in Renuka do Brasil and Renuka Vale do Ivai.
"Brazilian subsidiary Shree Renuka do Brasil Participacoes Ltd (SRDBPL) together with all of its subsidiaries (collectively 'Renuka Brazil') has filed for protection under Judicial Recovery... In the designated court in the capital of the state of Sao Paulo," Renuka Sugars said in a regulatory filing.
Renuka Brazil expects that the court will authorise it to conduct its business as usual while it makes efforts to find a long-term sustainable solution for its capital structure, the filing added.
