Rajshree Sugars advances after pact to sell subsidiary

Rajshree Sugars & Chemicals rose 3.68% to Rs 59.10 at 14:43 IST on BSE after the company said it entered into a share purchase agreement with the prospective buyer, for the sale of its wholly owned subsidiary.

The announcement was made after market hours on Friday, 25 November 2016.

Meanwhile, the S&P BSE Sensex was up 90.15 points or 0.34% at 26,406.49.

On BSE, so far 8,903 shares were traded in the counter as against average daily volume of 15,692 shares in the past one quarter. The stock hit a high of Rs 61.50 and a low of Rs 58.55 so far during the day. The stock had hit a 52-week high of Rs 89.75 on 16 June 2016. The stock had hit a 52-week low of Rs 19.70 on 12 February 2016. The stock had outperformed the market over the past one month till 25 November 2016, declining 5% compared with the Sensex's 6.32% fall. The scrip had also outperformed the market in past one quarter, advancing 9.93% as against the Sensex's 5.46% fall.

The small-cap company has equity capital of Rs 28.17 crore. Face value per share is Rs 10.

Rajshree Sugars & Chemicals said it has entered into a share purchase agreement with the prospective buyer, for the sale of the wholly-owned subsidiary company Trident Sugars, having the sugar factory at Telangana. The prospective buyer is expected to close the sale transaction by 31 March 2017.

Rajshree Sugars & Chemicals reported a net profit of Rs 6.51 crore in Q2 September 2016 compared with net loss of Rs 8.03 crore in Q2 September 2015. Net sales rose 28.3% to Rs 192.22 crore in Q2 September 2016 over Q2 September 2015.

Rajshree Sugars & Chemicals has interests across integrated fields such as sugar, distillery, power and biotechnology.

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