Shree Renuka offers Rs175-180 a share for 36.67 per cent in Balrampur Chini
15 Dec 2009
Shree Renuka Sugars has offered to acquire a 36.67 per cent stake in Balrampur Chini Mills, the country's second-largest sugar producer, at Rs175-180 a share, in a deal worth an estimated Rs1,700 to Rs2,000 crore.
Shree Renuka is currently in talks with promoters of Balarampur Chini and reports quoting company sources said Balrampur prompoters are expecting a price of Rs220 a share for parting with the stake.
The company's chief financial officer K K Kumbhat, however, refused to divulge details of the talks. "As of now, we have not given any price quote. Our talks have not reached to this level," he said.
The Balrampur Chini stock was down 3.63 per cent at Rs136.80 on the Bonmbay Stock Exchange in afternoon trade while Shree Renuka Sugars stock was up 4.29 per cent at Rs217.35.
Balrampur Chini stock traded at Rs143.15, down Rs1.3, or 0.90 per cent, on the Bombay Stock Exchange (BSE) on Monday. The scrip touched an intra-day high of Rs146.25 and a low of Rs142.05. The total volume of shares traded at the BSE was 696,600.
With nine sugar factories in eastern Uttar Pradesh and a crushing capacity of 73,500 tonnes of sugarcane per day, Balrampur Chini is the second-largest sugar mill in India.
