Shree Renuka Sugars shares climb over 5% on acquisition of Anamika Sugar Mills

Shree Renuka Sugars shares climbed over 5% to Rs 54.2 in Monday's intraday trade on BSE after the firm entered into an agreement for 100% acquisition of the equity shares of Anamika Sugar Mills Private Limited for Rs 235.5 crore.

Meanwhile, the company is to make a primary infusion of Rs 110 crore for the redemption of preference shares.

The objective of the acquisition of Anamika Sugars was to establish a presence in Uttar Pradesh, one of the largest sugar-producing states, and to cater to the markets of North and East India, the company said.

"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," it said in an exchange filing.

At 11.34 a.m., the scrip was trading 4.6% higher at Rs 56.8 on BSE. However, on a year-to-date basis, the stock declined 2%. Meanwhile, it has delivered multibagger returns as the stock surged 103% in the last two years and over 500% in the past three years.

With a market cap of Rs 12,060 crore, Shree Renuka Sugars is a midcap stock. From its 52-week high of Rs 68.7, the stock is trading 17% lower.

Technically, the stock's day RSI (14) is at 60.6. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 2.1, which is above its center and signal line, which is a bullish indicator. Shares of Shree Renuka Sugars are trading higher than the 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.

According to the latest shareholding pattern available with the exchanges, as of 30 June 2023, 62.48% of the company's shareholding is with the promoter & promoter group, and 37.52% with the public.

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