Riddhi Siddhi Gluco Biols sells starch biz, stock rallies

MUMBAI: Shares of Riddhi Siddhi Gluco Biols (RSGBL) were locked at the 20 percent upper circuit after The Times of India reported that the company sold its starch business to Roquette Freres for Rs 950 crore. The stock was at Rs 259 on the BSE on a volume of 14,517 shares.

RSGBL recently got the go-ahead from the Gujarat high court to demerge and transfer its manufacturing and warehousing business to a new entity, Riddhi Siddhi Corn Processing. The French company, the world's third-largest player in the sector, will buy about a 60 percent stake in the new entity.

The company earlier announced that it will invest the money received through the deal to fuel its power business and repay debts. The French company owns a 14.9 percent stake in RSGBL, which enjoys a healthy 18% share in the Indian starch and derivatives market.

RSGBL has a manufacturing facility each in Gokak (Karnataka), Pantnagar (Uttaranchal) and Viramgam (Gujarat) with a total capacity of 2,000 tonnes a day. It exports to more than 25 countries.