Shree Renuka dips 1.7 pc on BSE in volatile trade

MUMBAI: Shares of Shree Renuka Sugars were volatile in the Early morning trade today, a day after the company announced its Rs 1,530-crore deal to acquire a majority stake in a Brazilian company.

The stock opened nearly 3 per cent higher at Rs 185, but profit booking came in within minutes of opening on the Bombay Stock Exchange. The scrip tanked 1.67 per cent to a low of Rs 176.90 within the first hour of trade.

Shree Renuka Sugars, yesterday, said it has entered into an agreement with Brazil's Grupo Equipav to acquire 50.79 per cent stake in Equipav for USD 329 million by March 2010.

The company plans to fund the acquisition by way of internal accruals, institutional placement of Rs 500 crore and conversion of warrants worth Rs 185 crore.

On the National Stock Exchange, the scrip opened seven per cent higher at Rs 192. It later fell 1.83 per cent to Rs 176.65.

Over 26 lakh shares changed hands on both the bourses.