Shree Renuka Sugars fell 5.11% to Rs 21.35 at 9:45 IST on BSE after the company said that Singapore-based agri-business firm Wilmar International will invest approximately $200 million in the company.
The announcement was made after market hours on Thursday, 20 February 2014.
Meanwhile, the BSE Sensex was up 151.84 points, or 0.74%, to 20,688.48.
On BSE, so far 51.60 lakh shares were traded in the counter, compared with an average volume of 10.56 lakh shares in the past one quarter.
The stock hit a high of Rs 21.50 and a low of Rs 20.25 so far during the day. The stock hit a 52-week high of Rs 28.60 on 21 February 2013. The stock hit a 52-week low of Rs 14.50 on 28 August 2013.
The stock had outperformed the market over the past one month till 20 February 2014, rising 7.66% compared with the Sensex's 3.15% fall. The scrip had outperformed the market in past one quarter, rising 5.14% as against Sensex's 0.48% decline.
The small-cap company has an equity capital of Rs 67.13 crore. Face value per share is Re 1.
Shree Renuka Sugars (SRS) said that it has entered into an agreement with Wilmar International (Wilmar), through its 100% subsidiary Wilmar Sugar Holdings (WSH), to facilitate the investment of approximately $200 million in primary capital into SRS.
SRS said that this investment into the company would be done in two steps. The first step would involve an investment of upto Rs 517 crore by WSH in SRS through a preferential allotment of upto 25.75 crore shares of fresh equity to WSH at a price of Rs 20.08 per share. After this preferential issue, the existing promoters and WSH would hold 27.5% of SRS' expanded equity share capital.
As per Sebi guidelines, there will also be an open offer by WSH and the existing promoters for up to 26% of the expanded equity share capital of the SRS at a price of Rs 21.89 per share. The second step would involve Wilmar and the existing promoters of SRS jointly participating in a rights issue to raise upto a further Rs 725.40 crore of primary equity capital for SRS, the company said in a statement. As on 31 December 2013, promoters held 38.35% in SRS.
Under a joint venture (JV) agreement signed between the existing promoters, WSH and the company, SRS would be jointly controlled by the existing promoters and Wilmar, with both parties holding equal shareholding and board representation in SRS. The existing promoters will continue with the management of the company with Wilmar being actively involved in strategic decisions. The investment is subject to approval of shareholders of SRS, anti-trust clearances in India and Brazil and such other statutory clearances as may be deemed necessary, SRS said in a statement.
SRS said that the proceeds of this investment/fund-raising would be used to pay down existing debt of SRS in India. As a strategic shareholder, WSH's shareholding in SRS and the capital infusion will strengthen the company's financial and business position and also provide a further platform for growth, it added. Wilmar's global reach and strong presence in key sugar producing countries is complementary to Shree Renuka's business, the company said in a statement.
Narendra Murkumbi, Vice-Chairman and Managing Director of SRS said, "This is a path-breaking move in the sugar business which would create a very strong partnership in some of the key global markets for sugar. Wilmar's leadership position in the edible oil business globally and its strong reach in several countries across the world would be synergistic with our large footprint in India and Brazil, the two largest sugar producers in the world. Wilmar's trading expertise, strong financial strength and history of entrepreneurial growth makes it an ideal partner."
Kuok Khoon Hong, Chairman and CEO of Wilmar said, "We are very pleased to be partnering with Mrs. Vidya Murkumbi and Mr. Narendra Murkumbi. India is a very important market for Wilmar. Besides the benefit for our sugar business, this venture will complement the development of our edible oils and other businesses in India."
Jean-Luc Bohbot, Managing Director of Wilmar Sugar and Group Sugar Head at Wilmar said, "Shree Renuka Sugar, with their two well-located refineries, large storage capacity and competitive milling operations in India, good mills and logistics assets in Brazil, fits perfectly with Wilmar Sugar's existing global footprint and provides us with a unique opportunity to participate in the Indian sugar industry. Their unique expertise will be of great value to our partnership."
Wilmar International, founded in 1991 and headquartered in Singapore, is today Asia's leading agri-business group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange and has a market capitalization of about $17 billion and revenues of $44.1 billion, with profit of $1.3 billion in FY 2013. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertilisers manufacturing and grains processing.
Shree Renuka Sugars reported net loss of Rs 193.90 crore in Q3 December 2013 as against net profit of Rs 17.50 crore in Q3 December 2012. Net sales declined 35.50% to Rs 1191.10 crore in Q3 December 2013 over Q3 December 2012.
SRS is a global sugar producer/refiner with a strategic portfolio of sugar assets across India, including port-based refining assets, sugar mills in productive cane growing regions and diversified revenue streams from ethanol and electricity co-generation. Additionally in Brazil, SRS has well located and best-in-class sugar, ethanol, cogeneration, port and logistics assets. The company operates eleven mills globally with a total crushing capacity of 20.7 million tonnes per annum and two port-based sugar refineries with sugar production capacity of 1.7 million tons per year. Shree Renuka Sugars has high level of integration in its mills with total cogeneration capacity of 584 MW and ethanol production capacity of 4,160 kilolitres per day.
The announcement was made after market hours on Thursday, 20 February 2014.
Meanwhile, the BSE Sensex was up 151.84 points, or 0.74%, to 20,688.48.
On BSE, so far 51.60 lakh shares were traded in the counter, compared with an average volume of 10.56 lakh shares in the past one quarter.
The stock hit a high of Rs 21.50 and a low of Rs 20.25 so far during the day. The stock hit a 52-week high of Rs 28.60 on 21 February 2013. The stock hit a 52-week low of Rs 14.50 on 28 August 2013.
The stock had outperformed the market over the past one month till 20 February 2014, rising 7.66% compared with the Sensex's 3.15% fall. The scrip had outperformed the market in past one quarter, rising 5.14% as against Sensex's 0.48% decline.
The small-cap company has an equity capital of Rs 67.13 crore. Face value per share is Re 1.
Shree Renuka Sugars (SRS) said that it has entered into an agreement with Wilmar International (Wilmar), through its 100% subsidiary Wilmar Sugar Holdings (WSH), to facilitate the investment of approximately $200 million in primary capital into SRS.
SRS said that this investment into the company would be done in two steps. The first step would involve an investment of upto Rs 517 crore by WSH in SRS through a preferential allotment of upto 25.75 crore shares of fresh equity to WSH at a price of Rs 20.08 per share. After this preferential issue, the existing promoters and WSH would hold 27.5% of SRS' expanded equity share capital.
As per Sebi guidelines, there will also be an open offer by WSH and the existing promoters for up to 26% of the expanded equity share capital of the SRS at a price of Rs 21.89 per share. The second step would involve Wilmar and the existing promoters of SRS jointly participating in a rights issue to raise upto a further Rs 725.40 crore of primary equity capital for SRS, the company said in a statement. As on 31 December 2013, promoters held 38.35% in SRS.
Under a joint venture (JV) agreement signed between the existing promoters, WSH and the company, SRS would be jointly controlled by the existing promoters and Wilmar, with both parties holding equal shareholding and board representation in SRS. The existing promoters will continue with the management of the company with Wilmar being actively involved in strategic decisions. The investment is subject to approval of shareholders of SRS, anti-trust clearances in India and Brazil and such other statutory clearances as may be deemed necessary, SRS said in a statement.
SRS said that the proceeds of this investment/fund-raising would be used to pay down existing debt of SRS in India. As a strategic shareholder, WSH's shareholding in SRS and the capital infusion will strengthen the company's financial and business position and also provide a further platform for growth, it added. Wilmar's global reach and strong presence in key sugar producing countries is complementary to Shree Renuka's business, the company said in a statement.
Narendra Murkumbi, Vice-Chairman and Managing Director of SRS said, "This is a path-breaking move in the sugar business which would create a very strong partnership in some of the key global markets for sugar. Wilmar's leadership position in the edible oil business globally and its strong reach in several countries across the world would be synergistic with our large footprint in India and Brazil, the two largest sugar producers in the world. Wilmar's trading expertise, strong financial strength and history of entrepreneurial growth makes it an ideal partner."
Kuok Khoon Hong, Chairman and CEO of Wilmar said, "We are very pleased to be partnering with Mrs. Vidya Murkumbi and Mr. Narendra Murkumbi. India is a very important market for Wilmar. Besides the benefit for our sugar business, this venture will complement the development of our edible oils and other businesses in India."
Jean-Luc Bohbot, Managing Director of Wilmar Sugar and Group Sugar Head at Wilmar said, "Shree Renuka Sugar, with their two well-located refineries, large storage capacity and competitive milling operations in India, good mills and logistics assets in Brazil, fits perfectly with Wilmar Sugar's existing global footprint and provides us with a unique opportunity to participate in the Indian sugar industry. Their unique expertise will be of great value to our partnership."
Wilmar International, founded in 1991 and headquartered in Singapore, is today Asia's leading agri-business group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange and has a market capitalization of about $17 billion and revenues of $44.1 billion, with profit of $1.3 billion in FY 2013. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertilisers manufacturing and grains processing.
Shree Renuka Sugars reported net loss of Rs 193.90 crore in Q3 December 2013 as against net profit of Rs 17.50 crore in Q3 December 2012. Net sales declined 35.50% to Rs 1191.10 crore in Q3 December 2013 over Q3 December 2012.
SRS is a global sugar producer/refiner with a strategic portfolio of sugar assets across India, including port-based refining assets, sugar mills in productive cane growing regions and diversified revenue streams from ethanol and electricity co-generation. Additionally in Brazil, SRS has well located and best-in-class sugar, ethanol, cogeneration, port and logistics assets. The company operates eleven mills globally with a total crushing capacity of 20.7 million tonnes per annum and two port-based sugar refineries with sugar production capacity of 1.7 million tons per year. Shree Renuka Sugars has high level of integration in its mills with total cogeneration capacity of 584 MW and ethanol production capacity of 4,160 kilolitres per day.
Source: News in Hindi
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