Shree Renuka Sugars’ board has given in-principle approval for issuing shares to existing shareholders through the rights issue to raise Rs 725.4 crore. The terms and conditions of the rights issue as well as the entitlement ratio, record date and timing of the rights issue would subsequently be decided by a committee to be constituted by the Board for this purpose.
On February 20, the Board had approved allotment of up to 25.75 crore fresh shares at Rs 20.08 each for Rs 517.04 crore to Wilmar Sugar Holdings (WSH), a wholly-owned arm of Wilmar International, on preferential basis. After issue of fresh shares, Wilmar would have 27.5 per cent stake in Renuka Sugars, while promoters stake would also come down to 27.5 per cent from 38.36 per cent stake as on December 31, 2013.
Shree Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonnes per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year.
