Meanwhile, the BSE Sensex was up 7.91 points, or 0.03%, to 27,790.16.

On BSE, so far 15.06 lakh shares were traded in the counter, compared with average daily volume of 21.53 lakh shares in the past one quarter. The stock hit a high of Rs 17.35 and a low of Rs 16.45 so far during the day. The stock hit a 52-week high of Rs 19.18 on 15 June 2016. The stock hit a 52-week low of Rs 7.10 on 4 September 2015. The stock had underperformed the market over the past 30 days till 26 August 2016, sliding 8.57% compared with 1.51% slide in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 21.49% as against Sensex's 4.23% rise.

The small-cap company has equity capital of Rs 92.88 crore. Face value per share is Re 1.

The Assembly of Creditors of Renuka do Brasil S/A (RdB) approved the reorganization plan presented by RdB on 26 August 2016. RdB is the largest subsidiary of Shree Renuka Sugars (SRSL). The plan approved by the Assembly of Creditors obliges the banks and most of the creditors of RdB (except employees, sugarcane & other essential suppliers and SME suppliers) to settle their debts on receiving 30% of the notified value of debt plus interest from the date of plan approval until the date of payment. The total bank debt in RdB notified as on the date of filing the Recuperacao Judicial (September 28, 2015) was Brazilian Real (BRL) 2063 million (Rs 4301.40 crore) and other liabilities covered by the above plan are BRL 210.80 million (Rs 439.50 crore) implying total reduction of liabilities by BRL 1592 million (Rs 3318.60 crore).

The settlement of debt would be funded by sale of Madhu Mill, one of the mills of RdB, with the capacity of 6 million mt cane crushing capacity out of total 10.5 million mt cane crushing capacity in RdB. Employees, sugarcane and other essential suppliers and SME suppliers will be paid from the operating cash flows of RdB over the next 12 months except for BRL 41.78 million (Rs 87.10 crore), which will come from the sale of Madhu Mill.

Shree Renuka Sugars is not putting any new capital under this plan either as debt or equity. However any shortfall in reaching the target value of 30% (approximately BRL 682.20 million or Rs 1422.30 crore) will have to be funded by the shareholders of RdB in cash or by sale of Shree Renuka Sugars controlling stake in RdB, the company said in a press release.

This plan is subject to final approval by the presiding judge as per the Judicial Protection Law, it added.

RdB was acquired in July 2010 and SRSL currently holds a 59.4% stake in this subsidiary. RdB owns two large sugar mills with an aggregate crushing capacity of 10.5 million tons of cane per annum (about 45,000 tcd) with 295 megawatts (MW) of cogeneration capacity and associated sugarcane plantations in the state of Sao Paulo. The reorganization plan of SRSL's other Brazilian subsidiary, Renuka Vale do Ivai (RVDI) with an annual capacity of 3.1 million tons of cane was successfully approved in July 2016.

Due to adverse weather affecting sugarcane crops and due to low sugar and ethanol prices for several years, both RdB and RVDI incurred large losses leading to an inability to service their debt. RdB and RVDI had therefore filed for protection alongwith their Brazilian holding companies under the Judicial Protection Law on 28 September 2015.

Shree Renuka Sugars reported net profit of Rs 3.20 crore in Q1 June 2016 as against net loss of Rs 150.20 crore in Q1 June 2015. Net sales rose 3.50% to Rs 1603.60 crore in Q1 June 2016 over Q1 June 2015.

Shree Renuka Sugars is one of the leading sugar manufacturers in India.