Upper Ganges, Oudh Sugars rally on board nod for scheme of arrangement

Upper Ganges Sugar locked in upper circuit of 20% at Rs 40.80, while Oudh Sugar Mills rallied 18% to Rs 20.30 on BSE.

Shares of two K K Birla group sugar companies Upper Ganges Sugar Industries and Oudh Sugar Mills have rallied by up to 20% after its board approved composite scheme of arrangement.

The two companies said that their respective Boards on Friday approved two separate schemes of arrangements for the proposed restructuring exercise.

Upper Ganges Sugar and Industries is locked in upper circuit of 20% at Rs 40.80 on BSE.  Till 1009 hours, a combined 12,483 shares changed hands and there are pending buy orders for 24,226 shares on BSE and NSE.

Upper Ganges said that its board proposed to demerge tea and investment businesses to Ganges Securities. Existing shareholders of Upper Ganges would get 77 shares of Ganges Securities for 89 shares held.

It also proposed to transfer of tea business from Ganges Securities to its 100% subsidiary Cinnatolliah Tea.

Oudh Sugar Mills has rallied 18% to Rs 20.30 after its board proposed demerger of food processing and investments businesses to Palash Securities, another group entity.

The share swap ratio has been fixed at 27 shares of Palash Securities for every 70 equity shares Oudh Sugar. Post demerger, the shareholding of Palash Securities would reflect mirror image of the shareholding of Oudh Sugar, the company said in a statement.

It also planned merger of Vaishli Sugar with Magadh Sugar at swap ratio of 276 shares of Magadh Sugar for 13 shares of Vaishali Sugar. The proposed swap ratio for Upper Ganges as a compensation for its Bihar Sugar assets would be 88 shares of Magadh Sugar for every 113 shares of Upper Ganges.