Shree Renuka rally fizzles out

MUMBAI: Shree Renuka Sugars, after touching a month-high today, settled 1.09 per cent down after the company announced that it will acquire 50.34 per cent stake in Brazilian company Equipav for a lower price of Rs 1,151 crore than the previously agreed Rs 1,530 crore.

The Shree Renuka counter closed at Rs 68, down 1.09 per cent on the Bombay Stock Exchange after rising nearly 2 per cent to touch a month-high at Rs 70.10 in the morning.

The company said it will acquire 50.34 per cent stake in Equipav for Rs 1,151 crore, which is 25 per cent less than what the two firms had agreed earlier. In February, the company had said it would buy a 50.79 per cent stake in Equipav for Rs 1,530 crore.

The company re-negotiated the deal owing to the sharp fall in sugar prices in the global market. As per the new agreement, Shree Renuka will invest Rs 1,151 crore (USD 250 million) in Equipav with management control.

On the National Stock Exchange, the scrip closed at Rs 67.80, down 1.45 per cent. On volume front a total of 98.57 lakh Shree Renuka shares changed hands.