Shree Renuka Sugars' open offer fails

Shree Renuka Sugars' open offer has failed as the company has been able to acquire only 1,750 shares out of over 24 crore shares due to higher share price compared with the offer rate.
In February, the company had announced sale of 27.5 per cent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore through a preferential allotment of fresh equity, triggering mandatory open offer by both Wilmar and existing promoters.
In the open offer, Shree Renuka Sugars Group along with Wilmar International proposed to acquire 24.31 crore shares at Rs 21.89 per share, representing 26 per cent stake. The offer started on June 9 and closed on June 20.

As per the BSE filing, both the joint-venture partners were able to acquire only 1750 shares worth Rs 38,307 as the open offer rate was much lower than the market price that hovered around Rs 28-29 per share.
Post open offer, the combined stake of Shree Renuka Sugars and Wilmar stands at little over 55 per cent in the company with both partners having an equal stake.
As per the deal, both Wilmar and the existing promoters will jointly participate in a rights issue to raise up to Rs 725 crore for investment in the company.
Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonne per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year.

Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, speciality fats, biodiesel and fertilisers manufacturing and grains processing.