Shree Renuka inks pact to acquire 100% stake in Anamika Sugar Mills for ₹235.5 crore

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₹235.5 crore, as per a regulatory filing made by the Mumbai-headquartered agro-business company on September 26. As per the agreement, Shree Renuka will purchase around 5 crore equity shares for ₹47.05 apiece. Post-completion of the acquisition, Anamika will become a wholly-owned subsidiary of the company.

The agreement has been signed “for the acquisition of 100% equity - Rs.235.5 crores (5,00,48,589 equity shares at Rs.47.05/- per share)," the exchange filing stated. The deal, in the form of cash consideration, is to be completed on or before October 15, 2023, it further noted. The primary infusion for redemption of preference shares is “ ₹110 crore", Shree Renuka noted, adding that the price per share for such primary infusion “will be determined in due course by the board of directors of Anamika in consultation with the company".

Shree Renuka's shares had jumped by 2.19 percent at the stock market on September 25, after the company's board gave its nod to the acquisition. In the trading session on September 26, the shares closed at ₹54.76 apiece on the BSE, down by 0.72 percent as against the previous day's close. According to the company, the acquisition will aid in its efforts to establish presence in Uttar Pradesh, one of the largest sugar producing states, and 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/unskilled labour. The company may expand / alter /modernize the plant based on its need and preference," the filing added. Anamika, incorporated in 2010, is involved in the business of cultivation,