Shree Renuka Sugars is currently trading at Rs 177.40, down by 2.50 points or 1.39% from its previous closing of Rs 179.90 on the BSE.
The scrip opened in green at Rs 185.00 and has touched a high and a low of Rs 187.00 and Rs 176.30 respectively. So far 681000 shares were traded on the counter.
The BSE group ‘A’ stock of face value Re 1 has touched a 52 week high of Rs 247.20 on January 7, 2010 and a 52 week low of Rs 72.70 on March 9, 2009.
The promoters holding in the company as per December 2009 stood at 34.46%, FII and DII held 29.76% and 15.19% respectively while others were holding 20.59%.
Shree Renuka Sugars has inked definitive agreements with Grupo Equipav to acquire majority stake in the latter’s Brazilian unit Equipav S.A. The company will acquire 50.79% stake in Equipav S.A. for $329 million or Rs 1,530 crore.
Equipav S.A. is one of the largest sugar and ethanol companies in Brazil. The company consists of two very large and modern sugar/ ethanol mills with integrated co-generation facilities having combined cane crushing capacity of 10.5 million tonne per annum.
Apart from this, the Brazilian entity also has a co-generation capacity of 203 megawatt (MW). It is looking to undertake capital expenditure of R$218 million to augment combined cane crushing capacity of the mills to 12 million tonne per annum and co-generation capacity to 295 MW, which will be funded through proceeds of the stake sale.
Meanwhile, Equipav had net debt of around R$1.5 billion at the end of December 2009.
This is biggest deal clinched by any local sugar maker till date and will help Shree Renuka to get counted among the top three sugar producers of the globe.
Shree Renuka Sugars, established in 1995, is the largest sugar refiner of the country. It had reported a net profit of Rs 194.7 crore for the December 2009 quarter against Rs 10.1 crore for the December 2008 quarter, up by whopping 1827.72%.
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