Bajaj Hindustan Sugar has acquired two companies for about ₹800 crore. The company acquired a 98.01 per cent stake in Phenil Sugars for ₹350 crore and a 5 per cent stake in Bajaj Power Ventures for ₹446 crore.
Bajaj Hindustan Sugar said it acquired stake in Phenil Sugars since there has been a substantial appreciation in the value of assets (mainly land) at both the company’s plants at Basti and Govindnagar.
“Accordingly, it was recommended to take control over PSL to realise the investments made by BHSL in PSL. After taking control of PSL, BHSL may take necessary steps to realise the amount by selling the assets of PSL in an appropriate manner or put the assets to appropriate usage,” the company said.
Incorporated in 2003, Phenil Sugar mainly owns and operates sugar plants. In October 2004, Phenil acquired two sugar companies, Govind Nagar Sugar and Basti Sugar Mills from the Narang Group. Both GNSL and BSML were amalgamated with Phenil on April 1, 2010.
The acquisition will be completed before March 31, it said.
On Bajaj Power Ventures
On BPVPL, the company said it had acquired 4.05 crore equity shares of ₹10 each at ₹110 per share amounting to ₹446 crore, in a swap of zero coupon optionally convertible debentures from Lambodar Stocks held by BHSL.
Bajaj Power Ventures is engaged in developing power projects through its subsidiaries. It is the holding company of Lalitpur Power Generation with 1980 MW operational thermal plant and Bajaj Energy has 450 MW capacity. Both the power plants are in Uttar Pradesh.
Bajaj Power Ventures had recorded a consolidated turnover of ₹7,048 crore and profit before tax of ₹360 crore in FY’22. The networth of the company was ₹5,963 crore.
On a standalone basis, its turnover was ₹160 crore and profit before tax was at ₹159 crore. Its networth was ₹3,986 crore.
The acquisition will provide Bajaj Hindustan Sugar an exposure to Group’s power business, which has been performing well, said the company in a statement on Thursday.