Ethanol stock in focus after NCLT approves merger of 3 wholly owned subsidiaries
Shree Renuka Sugars Ltd., India’s largest sugar refiner and a top ethanol producer, has received NCLT approval to merge its three subsidiaries—Monica Trading, Shree Renuka Agri Ventures, and Shree Renuka Tunaport—into the parent company. Following the merger announcement, its share price dipped slightly. The company’s Q2 FY25 financials showed a slight revenue increase year-over-year but an overall decline from the last quarter.
India’s largest sugar refiner and a leading ethanol producer has received approval from the National Company Law Tribunal (NCLT) for the merger of its three subsidiaries—Monica Trading Private Limited, Shree Renuka Agri Ventures Limited, and Shree Renuka Tunaport Private Limited—into the parent company.
Share Price Movement
The share price of Shree Renuka Sugar went down by 2 percent to Rs. 39.94 per share on Wednesday, a decrease from its previous close of Rs. 40.75 per share. The market capitalisation now stands at approximately Rs. 8,501 crore as of November 13, 2024.
What Happened
The National Company Law Tribunal (NCLT) approved the merger scheme of three wholly-owned subsidiaries—Monica Trading Private Limited, Shree Renuka Agri Ventures Limited, and Shree Renuka Tunaport Private Limited—with their parent company Shree Renuka Sugars Limited. The approval was received on November 12, 2024, with no impact on the company’s paid-up capital.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Shree Renuka Sugars’s consolidated revenue from operations has increased by 0.43 percent YOY from Rs. 2,555 crore in Q2 FY24 to Rs. 2,566 crore in Q2 FY25 and decreased by 15.97 percent QoQ from Rs. 3,054 crore in Q4 FY24.
The company’s consolidated net profit has reduced a negative Rs. 206 crore in Q2 FY24 to a negative Rs. 23 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased substantially from a negative Rs. 166 crore.
Market Outlook
The Indian sugar industry faced challenges in FY 2023–24 due to El Nino affecting cane production. However, the sector demonstrated resilience, with production reaching 34.3 million MT, including 2.3 million MT for ethanol. Despite production bans and adversities, the industry maintained a comfortable stock of 9 million MT. Looking ahead, with favourable monsoon forecasts and government support for ethanol blending, the sector expects to divert 4.5 million MT of sugar for ethanol production, showing positive growth potential.
Shareholding Pattern
As of the November 2024 shareholding pattern, Shree Renuka Sugars Limited is primarily held by the promotors at 62.48 percent, foreign institutional investors hold 4.25 percent, and the public with 23.15 percent.
About Company
Shree Renuka Sugars Limited (SRSL), founded on October 25, 1995, is a prominent agribusiness and bio-energy company headquartered in Mumbai. Recognised as India’s largest sugar refiner and a leading ethanol producer, SRSL plays a key role in supporting the country’s ethanol-blending initiative, essential for sustainable fuel development.
The company operates eight sugar mills across Uttar Pradesh, Maharashtra, and Karnataka, complemented by two port-based refineries with a daily refining capacity of 4,000 tons. SRSL’s product portfolio spans raw and refined sugar under the popular “Madhur” brand, fuel-grade ethanol, and power generated through bagasse-based plants. In FY2022,
With a strong focus on sustainability and green energy, SRSL continually innovates to reduce waste and enhance efficiency. Its strategic international presence, including ventures in Brazil and Mauritius, underscores its commitment to driving growth in agribusiness.
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Source Link : Trade Brains
