The largest sugar producer will acquire Anamika to establish presence in Uttar Pradesh, one of the largest sugar producing states, and to cater to the markets of North and East India.

The 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.

The transaction will be completed on or before 15 October 2023. Post-completion of the acquisition, Anamika will become a wholly-owned subsidiary of the company.

Further, the company will infuse up to Rs 110 crore in Anamika by way of subscription to its equity shares for the purpose of redemption of 100% of the outstanding cumulative redeemable preference shares (CRPS) issued by Anamika in favour of SICPA India.

Meanwhile, the board has approved the rated, listed, unsecured non-convertible redeemable debentures (NCDs) worth Rs 285 crore on private placement basis.

The coupon rate offered at 9.55% per annum. The tenure of the instruments is 5 years and the NCDs are proposed to be listed on BSE.

Shree Renuka Sugars is one of the leading sugar manufacturers in India with a track record of over 25 years. Its operations are integrated, encompassing crushing of cane, refining of raw sugar, ethanol production and power generation.

The company reported a net loss of Rs 138.20 crore in the quarter ended June 2023 as against net loss of Rs 113.30 crore during the previous quarter ended June 2022. Sales rose 16.95% to Rs 2284.00 crore in Q1 FY24 over Q1 FY23.