Shree Renuka Sugars up 6% on possible stake sale to Wilmar

Shares of Shree Renuka Sugars are on buyers' radar on Monday as the stock rallied more than 6 percent in intraday trade. The Karnataka-based sugar company is in advanced talks with Wilmar for stake sale that is likely to be announced by month-end, reports CNBC-TV18 quoting sources.

It is learnt that the company may issue fresh equity shares to Wilmar, a Singapore-based agribusiness group having market cap of Singapore dollar 23 billion. Wilmar deal is likely to trigger an open offer, say sources.

Promoters, who hold 38.36 percent stake in Shree Renuka, are trying hard to retain minority stake in company.

Sources say the fund will be used for repaying short-term debt of the company. Total debt on its books stands at Rs 8,500 crore, including Rs 3,500 crore on the domestic front.

In a reply to query sent by CNBC-TV18, Shree Renuka denies plans of stake sale while the channel is waiting for response from Wilmar group.

At 13:12 hours IST, the stock was trading at Rs 21, up 3.96 percent over previous close on the BSE.