Sugar shares extend rally; Simbhaoli, Uttam Sugar, Thiru Arooran up 20%

Rajshree Sugars, Dharani Sugar, Riga Sugar, Mawana Sugars and Kesar Enterprises were up 10% -19.

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.

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.