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Shree Renuka Sugars, on Friday, issued 50 crore compulsorily convertible preferential shares at ₹16.27 each to Singapore-based Wilmar Sugar Holdings Pte. The company has mopped up about ₹800 crore through the issue.
Renuka Sugars has also enhanced its authorised share capital to ₹2,515 crore from ₹185 crore, comprising ₹290 crore equity shares and ₹2,225 crore preferential shares.
The investment by Wilmar is subject to successful completion of a debt restructuring package which includes Wilmar making an additional investment of ₹784 crore for repayment of debt and fund working capital requirements, besides lenders converting part of Renuka Sugars’ debt into equity shares and convertible securities, said Renuka Sugars in a statement on Friday.
The restructuring package with banks also involves part-waiver of debt and restructuring of the remaining loan under new terms, it added. Completion of the issue is subject to fulfilment of conditions precedent set out in the subscription agreement, which includes approval from shareholders, RBI’s Oversight Committee on the restructuring package and anti-trust clearances from the relevant competition authorities, it added.
Once completed, the deal would significantly pare the company’s debt burden and interest cost in India besides releasing the company from all guarantees related to overseas subsidiaries.
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