Ponni Sugars advances on receiving RBI approval to raise foreign investors’ stake to 49%

Ponni Sugars (Erode) is currently trading at Rs. 157.00, up by 2.60 points or 1.68% from its previous closing of Rs. 154.40 on the BSE.

The scrip opened at Rs. 170.00 and has touched a high and low of Rs. 170.00 and Rs. 153.10 respectively. So far 9,721 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 250.00 on 06-Nov-2015 and a 52 week low of Rs. 113.00 on 17-Jul-2015.

Last one week high and low of the scrip stood at Rs. 170.00 and Rs. 130.50 respectively. The current market cap of the company is Rs. 135.00 crore.

The promoters holding in the company stood at 42.36% while Institutions and Non-Institutions held 27.86% and 29.78% respectively.

Reserve Bank of India (RBI) has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)/Qualified Foreign Investors (QFIs)/Non Residential Indians (NRIs)/Person of Indian Origin (PIO) can now invest up to 49 per cent of the paid up capital of Ponni Sugars (Erode) under the Portfolio Investment Scheme (PIS).

RBI has further advised that the aggregate limit for NRI investment shall not exceed 24% within the overall limit of 49%. The company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs/QFls/NRIs/PIO.

Ponni Sugars (Erode) is an efficient and quality producer of sugar, catering to both domestic and international markets. The company is engaged in the manufacturing of sugar and it’s by products. It manufactures cane sugar, cane molasses and bagasse.