Renuka Sugars Board Approves Anamika Sugar Mills Acquisition
Shree Renuka Sugars Limited took a significant leap forward today, with its shares surging by over 4 percent to reach Rs 57. This remarkable upswing came as a result of the company’s recent board approval to acquire Anamika Sugar Mills for a substantial sum of Rs 235.5 crore. This strategic move marks the establishment of Shree Renuka Sugars’ presence in the vibrant state of Uttar Pradesh.
In an official statement released on September 23, Shree Renuka Sugars revealed its commitment to infuse Rs 110 crore into Anamika through a subscription to equity shares. This capital injection will serve the purpose of redeeming 100 percent of the outstanding cumulative redeemable preference shares (CRPS) previously issued by Anamika in favor of SICPA India Private Limited. The precise price per share for this primary infusion will be determined in the coming days.
The overarching goal of this acquisition is to tap into the lucrative markets of North and East India. By acquiring Anamika, Shree Renuka Sugars anticipates gaining access to a well-established sugarcane catchment area, significantly reducing the lead time required for setting up operations in Uttar Pradesh, and ensuring easy access to a skilled and unskilled labor force. Once the acquisition is completed, Anamika will become a wholly-owned subsidiary of Shree Renuka Sugars.
Anamika Sugar Mills is currently engaged in a diverse range of activities, including cultivation, manufacturing, processing, refining, distribution, and trading of sugar and sugar-related byproducts. The existing crushing capacity of Anamika stands at an impressive 4000 tonnes of cane per day.
About Renuka Sugars:
Located in Mumbai, Maharashtra, Shree Renuka Sugars Ltd. holds the distinction of being India’s largest sugar refining and ethanol production company. It possesses a substantial refining capacity of 4,000 tonnes per day and a distillery capacity of 600 kiloliters per day. In the year 2019, this company played a pivotal role, contributing 20% to India’s sugar exports on the international stage.
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