Renuka Sugars today said its board of directors would meet on February 27 to consider a proposal
to issues shares to existing shareholders through rights issue.
Last week, Renuka Sugars had announced sale of 27.5 per cent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore.
It had also said the company would launch rights issue to raise another Rs 725 crore. Existing promoters and Wilmar would participate in the Rights Issue.
"..board of directors of the company will be held on February 27, 2014, inter alia, to consider a proposal for issue of equity shares of the company to the existing equity shareholders of the company on a rights basis...," Renuka Sugars said in a BSE filing.
On Feb 20, the Board had approved allotment of up to 25.75 crore fresh shares at Rs 20.08 each for Rs 517.04 crore to Wilmar Sugar Holdings (WSH), a wholly-owned arm of Wilmar International, on preferential basis.
After issue of fresh shares, Wilmar would have 27.5 per cent stake in Renuka Sugars, while promoters stake would also come down to 27.5 per cent from 38.36 per cent stake as on December 31, 2013.
WSH and the existing promoters have also announced open offer for up to 26 per cent of the expanded share capital at Rs 21.89 per share.
Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonnes per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year.