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Renuka Sugars Gets FMC Nod To Buy NCDEX Stake

14 August, 2009

Shree Renuka Sugars Ltd, a South India-based sugar producer, has received approval from Government of India’s regulatory authority Forward Markets Commission (FMC) to buy 5% stake in National Commodity and Derivatives Exchange (NCDEX). The firm is buying the stake for a sum of Rs 36.45 crore. Renuka Sugars would buy 1.5 million shares of NCDEX at Rs 243 per share, according to this report.

With this development, two shareholders of NCDEX – Goldman Sachs and Inter-Continental Exchange (ICE) – have sold two percent and three percent stake respectively to Renuka Sugars. This stake sale will bring their shareholding down to the permissable 5% each.

Renuka Sugars will have to surrender membership in the NCDEX before acquiring the stake as it cannot remain a shareholder and enjoy trading rights in the same exchange. It will have to submit the cancellation of their membership after they liquidate their open positions in the NCDEX.

Renuka Sugars produces refined sugar for direct consumption and industrial usage in Europe and Africa. It has two integrated refineries with capacity of 1000 tons per day (TPD) each at Munoli and Athani in Karnataka, besides a stand-alone 2000 TPD refinery at Haldia in West Bengal.

In July 2009, Renuka Sugars has raised Rs 506 crore by way of QIP issue. The company has posted a net profit of Rs 61 crore for the quarter ended June 30, 2009 as compared to Rs 23 crore in the corresponding period last year. Total income has increased from Rs 606 crore to Rs 724 crore in this period.


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Renuka Sugars Gets FMC Nod To Buy NCDEX Stake

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