 "Sugar shares extend rally; Simbhaoli, Uttam Sugar, Thiru Arooran up 20%")
Shares of sugar companies were trading higher for the second straight session and rallied by up to 20% on the BSE on hopes of debt restructuring.
Uttam Sugar Mills, Thiru Arooran Sugars and Simbhaloi Sugars have locked in upper circuit of 20% each on the BSE.
Rajshree Sugars, Dharani Sugar & Chemicals, Riga Sugar Company, Mawana Sugars, Kesar Enterprises, Sakthi Sugars and Kakatiya Cement Sugar & Industries were up 10%-19% as compared to 0.11% rise in the S&P BSE Sensex at 02:11 pm.
According to Business Standard reports, the Union finance ministry is considering a proposal to restructure sugar mills’ debt, which is under severe stress due to lack of capacity utilisation. CLICK HERE TO READ FULL REPORT.
Uttam Sugar Mills, Thiru Arooran Sugars and Simbhaloi Sugars have locked in upper circuit of 20% each on the BSE.
Rajshree Sugars, Dharani Sugar & Chemicals, Riga Sugar Company, Mawana Sugars, Kesar Enterprises, Sakthi Sugars and Kakatiya Cement Sugar & Industries were up 10%-19% as compared to 0.11% rise in the S&P BSE Sensex at 02:11 pm.
According to Business Standard reports, the Union finance ministry is considering a proposal to restructure sugar mills’ debt, which is under severe stress due to lack of capacity utilisation. CLICK HERE TO READ FULL REPORT.
Indian Sugar Mills Association (Isma) requested the government to restructure sugar mills’ debt under a scheme similar to S4A (Scheme for Sustainable Structuring of Stressed Assets), which is for major industries having exposure of Rs 500 crore and above.
As the majority sugar mills individually will not have exposure of Rs 500 crore, they requested to modify the scheme specifically appropriate for the sugar industry by modifying the exposure to Rs 100 crore and taking internal cash growth of one year period as the basis since sugar is a seasonal business.
| LTP | Returns in % | ||
| COMPANY | in Rs | 1 day | 2 days |
| UTTAM SUG.MILLS | 65.6 | 20.0 | 34.9 |
| THIRU AROOR. SU. | 68.6 | 19.9 | 31.9 |
| KESAR ENTERPRISE | 49.9 | 9.2 | 31.0 |
| RANA SUGARS | 12.1 | 10.7 | 28.2 |
| DHARANI SUGARS | 39.3 | 18.4 | 27.6 |
| SIMBHAOLI SUGAR | 33.8 | 19.9 | 25.0 |
| RAJSHREE SUGARS | 67.5 | 16.9 | 23.7 |
| PICCADILY SUGAR | 10.8 | 6.3 | 22.7 |
| RIGA SUGAR | 22.3 | 11.8 | 22.2 |
| MAWANA SUGARS | 53.7 | 14.6 | 20.3 |
| UPPER GANG. SUG. | 341.7 | 9.7 | 19.8 |
| SAKTHI SUGARS | 38.8 | 8.4 | 16.9 |
| DWARIKESH SUGAR | 344.0 | 7.3 | 15.4 |
| OUDH SUGAR MILLS | 113.6 | 7.7 | 14.5 |
| EMPEE SUGARS | 7.3 | 5.5 | 13.1 |
| DALMIA BHARAT | 145.7 | 7.3 | 13.0 |
| DHAMPUR SUGAR | 141.7 | 8.0 | 12.7 |
| KCP SUGAR &INDS. | 32.4 | 6.6 | 11.0 |
| PONNI SUG.ERODE | 215.0 | 5.5 | 10.3 |
| DHAMPUR.SPL.SUG. | 17.9 | 6.6 | 5.0 |
| Last traded price on BSE in Rs at 02:11 pm. | |||
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