Shree Renuka Sugars share price gained in the early trade on September 27 after the company acquired a 100 percent stake in Anamika Sugar Mills, setting itself for establishing a presence in Uttar Pradesh.
At 09:25 hrs Shree Renuka Sugars was quoting at Rs 55.32, up Rs 0.56, or 1.02 percent on the BSE.
The company entered into a binding agreement with Anamika Sugar Mills Private Limited to acquire Anamika for Rs 235.5 crore. The object is to establish a presence in Uttar Pradesh and to cater to the markets of north and east India, the company said.
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The acquisition would enable the company to gain access to sugarcane catchment area with a significant reduction in lead time for setting up the plant in Uttar Pradesh and easy access to labour. The company may expand, alter or modernise the plant based on its need and preference, it added.
At a meeting on September 23, the board approved entering into binding agreements for acquiring Anamika Sugar Mills and subsequent infusion of up to Rs 110 crore by way of subscription to equity shares of Anamika for the redemption of 100 percent of the outstanding cumulative redeemable preference shares (CRPS) issued in favour of SICPA India Private Limited.
The board also approved the raising of funds through unsecured, non-convertible debentures by private placement, subject to necessary approvals.
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