Shree Renuka Sugars raises Rs 506 cr via QIP issue

Sugar and bio-fuel manufacturer Shree Renuka Sugars today said it has raised over Rs 506 crore through private placement on preferential basis.

QIP Allotment Committee of the company took a decision to this effect at its meeting held on Thursday, Shree Renuka Sugars said in a filing with the Bombay Stock Exchange.

The committee allotted over 3.69 crore equity shares of Re 1 each at the issue price of Rs 137 per share qualified institutional buyers on preferential basis, it said.

It is expected to expand the refining capacity of its Athani unit in Karnataka to 2,000 tonne per day from 1,000 tonne per day.

It would also raise the refining capacity of its Havalga unit in Karnataka by 1,000 tonnes per day. Both plants are expected to be commissioned by December.

With the commissioning of the above refineries, the company's sugar refining capacity would increase to 6,000 tonne per day, which includes the 2,000 tonne per day port-based sugar refinery at Haldia in West Bengal, and the 4,000 tonne per day refining capacity at three of its integrated sugar mills in Karnataka.

Beside sugar, the company operates in power, ethanol and bio fertilizers sectors.

Shares of the company closed at Rs 142.10, down 2.74 per cent from the previous close on the BSE.