Shree Renuka Sugars Ltd To Acquire 100% Stake In Anamika Sugar Mills Pvt Ltd

Shree Renuka Sugars Ltd. has informed that in a Board meeting held on Saturday, Sept 23, 2023, entering into agreements for 100% acquisition of the total equity shares of Anamika Sugar Mills Private Limited (Anamika), a sugar manufacturing company located in Uttar Pradesh, India.

Acquisition of Anamika would enable Shree Renuka Sugars to gain access to existing sugarcane catchment areas with a significant reduction in lead time for setting up the plant in Uttar Pradesh and easy access to skilled/unskilled labour. The Company may expand/alter/modernize the plant based on its needs and preferences.

The company in a filing stated, "Entering into binding agreements for acquisition of 100% of the equity shares of Anamika Sugar Mills Private Limited (Anamika), a sugar manufacturing company located in Uttar Pradesh, India; and, subsequent infusion of up to INR 110 crores in Anamika by way of subscription to equity shares of Anamika for the purpose of redemption of 100% of the outstanding cumulative redeemable preference shares (CRPS) issued by Anamika in favour of SICPA India Private Limited. The Company will keep the exchanges updated on the details of the proposed issuance."

The objective of the acquisition is to establish the company's presence in Uttar Pradesh, one of the largest sugar-producing states, and to cater to the markets of North and East India. Post-completion of the acquisition, Anamika will become a wholly-owned subsidiary of the Company.

On Friday, the stock of Shree Renuka Sugars closed 1.21% higher at Rs 54.29 apiece on the BSE. The stock has fallen 1.65% in 1 week. It has given 20.78% positive return in 1 month. The stock declined 9.82% in 1 year. It has given 485.65% strong return in 3 years, and 290.01% in 5 years, respectively.

The stock's 52-week high is Rs 68.70 apiece and the 52-week low is Rs 39.50 apiece on the BSE. It has a market cap of Rs 11,555.57 Crore.

Shree Renuka Sugars Ltd. is a midcap FMCG sector company. It is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. The company has its Corporate office in Mumbai (Maharashtra, India) and its Head Office in Belgaum (Karnataka, India).