Shree Renuka dips after Wilmar agrees to buy stake
The stock has dipped 6% to Rs 21.20 on BSE with a combined 23.6 million shares changed hands on the counter till 0945 hours.
Shree Renuka Sugars has dipped 6% to Rs 21.20 after the company said it will sell 257.5 million fresh equity shares at price of Rs 20.08 per share to Singapore-based agri-business firm Wilmar International for Rs 517 crore in order to reduce the company's debt.
Shree Renuka Sugars (SRS) has entered into an agreement with Wilmar International, through its 100% subsidiary Wilmar Sugar Holdings (WSH), to facilitate the investment of approximately US $200 million (approx Rs 1,200 crore) in primary capital into the company, Shree Renuka Sugars said in a BSE filing.
The proceeds of this investment/fund-raising would be used to pay down existing debt of the company in India. As a strategic shareholder, WSH’s shareholding in SRS and the capital infusion will strengthen the Company’s financial and business position and also provide a further platform for growth, it added.
Renuka said there would be an open offer by Wilmar Sugar Holdings and the existing promoters for up to 26% of the expanded share capital at Rs 21.89 per share.
The stock opened at Rs 20.40 and touched a low of Rs 21.50 on the BSE. A combined 23.6 million shares already changed hands on the counter till 0945 hours against an average sub 5 million shares that were traded daily in past two weeks on the BSE and NSE.
Shree Renuka Sugars (SRS) has entered into an agreement with Wilmar International, through its 100% subsidiary Wilmar Sugar Holdings (WSH), to facilitate the investment of approximately US $200 million (approx Rs 1,200 crore) in primary capital into the company, Shree Renuka Sugars said in a BSE filing.
The proceeds of this investment/fund-raising would be used to pay down existing debt of the company in India. As a strategic shareholder, WSH’s shareholding in SRS and the capital infusion will strengthen the Company’s financial and business position and also provide a further platform for growth, it added.
Renuka said there would be an open offer by Wilmar Sugar Holdings and the existing promoters for up to 26% of the expanded share capital at Rs 21.89 per share.
The stock opened at Rs 20.40 and touched a low of Rs 21.50 on the BSE. A combined 23.6 million shares already changed hands on the counter till 0945 hours against an average sub 5 million shares that were traded daily in past two weeks on the BSE and NSE.