Shree Renuka shareholders approve allotment of shares to Wilmar for Rs 517 crore

Shree Renuka Sugars shareholders on Friday approved allotment of 2.57 crore shares to Singapore-based agri-business major Wilmar International for Rs 517 crore.

Last month, the sugar firm had announced sale of 27.5 per cent stake in it to Wilmar Sugar Holdings (WSH), a wholly-owned arm of Wilmar International, for Rs 517 crore.

Shareholders in an EGM held on Friday approved allotment of 2.57 crore shares, of face value of Re 1 each, for a price of Rs 20.08 per equity share aggregating Rs 517.04 crore to Wilmar Sugar Holdings (WSH) on preferential basis, the company said in a filing to the BSE.

Shareholders also approved an increase in the company's authorised share capital by Rs 80 crore to Rs 185 crore. At the time of announcement, the company had said it will issue fresh shares after which, Wilmar will have a 27.5 per cent stake in Renuka Sugars, while promoters stake will also come down to 27.5 per cent.

The company had also said the deal would be done in two steps. First, WSH would invest up to Rs 517 crore in the company through a preferential allotment of fresh equity.

This would trigger an open offer by WSH and the existing promoters for up to 26 per cent of the expanded share capital at Rs 21.89 per share.

Shree Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonnes per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year.