Sweet deal! Renuka Sugars soars on board nod to acquire Anamika Sugar Mills

The price per share for such primary infusion will be determined in due course, Renuka Sugars

Shares of Shree Renuka Sugars Limited gained over 4 percent to Rs 57 on September 25 after the board approved to acquire Anamika Sugar Mills for Rs 235.5 crore, a move that will establish its presence in the state of Uttar Pradesh.

"The company will infuse Rs 110 crore in Anamika by way of subscription to equity shares of Anamika for the purpose of redemption of 100 percent of the outstanding cumulative redeemable preference shares (CRPS) issued by Anamika in favour of SICPA India Private Limited", Renuka Sugars said in an exchange filing on September 23. The price per share for such primary infusion will be determined in due course, it added.

Follow our market blog for all the live action

The move is aimed to cater to the markets of North and East India.

"Acquisition of Anamika would enable the company to gain access to existing sugarcane catchment area with a significant reduction in lead time for setting up the plant in Uttar Pradesh and easy access to skilled and unskilled labour," the company said. Once done, Anamika will become a wholly-owned subsidiary.

Anamika is engaged in the business of cultivation, manufacturing, processing, refining, distribution trading of sugar and sugar products byproducts. The current crushing capacity of Anamika is around 4000 tonnes of cane per day.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.