Shree Renuka Sugars Limited witnessed a rise of over 4 percent in its shares, reaching Rs 57 on September 25, following the board’s approval of the acquisition of Anamika Sugar Mills for Rs 235.5 crore. This strategic move will mark the company’s entry into the state of Uttar Pradesh.
According to an exchange filing on September 23, Renuka Sugars stated, “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 favor of SICPA India Private Limited.” The price per share for this primary infusion will be determined at a later date.
This acquisition is a strategic step aimed at expanding the company’s presence in the North and East Indian markets.
Renuka Sugars explained, “Acquisition of Anamika would enable the company to gain access to an 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 labor.” Upon completion, Anamika will become a wholly-owned subsidiary of Renuka Sugars.
Anamika Sugar Mills is primarily involved in the cultivation, manufacturing, processing, refining, distribution, trading, and production of sugar and sugar-related products and byproducts. The current crushing capacity of Anamika stands at approximately 4,000 tonnes of cane per day.