 "Finding the sweet spot")
Mawana Sugars has surged 18% to Rs 50.20 on BSE in intra-day trade after the company decided to sell one of its units at Titawi to Indian Potash for Rs 375 crore.
“The board of directors of the company has agreed to sell one of the operating units of the company viz. Titawi Sugar Complex situated at Titawi, Distt. Muzaffarnagar, Uttar Pradesh as a going concern on an 'As is Where is What is' basis to Indian Potash Limited,” Mawana Sugars said in a statement.
The company will receive the amount of Rs 375 crore which is inclusive of about Rs 150 crore to be paid to cane farmers of the unit for eliminating long standing, it added.
The rational of the proposed slump sale is to liquidate huge cane arrears seriously affecting the fortunes of the entire company. The sale of this unit will put the rest of the company on the path to financial health.
At 10:46 am, the stock was up 14% at Rs 48.50 on BSE as compared to 1% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 986,039 shares changed hands on the BSE and NSE so far.
“The board of directors of the company has agreed to sell one of the operating units of the company viz. Titawi Sugar Complex situated at Titawi, Distt. Muzaffarnagar, Uttar Pradesh as a going concern on an 'As is Where is What is' basis to Indian Potash Limited,” Mawana Sugars said in a statement.
The company will receive the amount of Rs 375 crore which is inclusive of about Rs 150 crore to be paid to cane farmers of the unit for eliminating long standing, it added.
The rational of the proposed slump sale is to liquidate huge cane arrears seriously affecting the fortunes of the entire company. The sale of this unit will put the rest of the company on the path to financial health.
At 10:46 am, the stock was up 14% at Rs 48.50 on BSE as compared to 1% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 986,039 shares changed hands on the BSE and NSE so far.
