Shares of most sugar companies were trading at their respective 52-week lows on concerns of renewed pressure on the sweetener prices, if the final production would be higher than the current estimates.
Balrampur Chini Mills, Dwarikesh Sugar Mills, Bannari Amman Sugars, Bajaj Hindustan, Mawana Sugars and Thiru Arooran Sugars are among 12 sugar stocks that hit their respective 52-week lows on the BSE in intra-day trade on Monday. The S&P BSE Sensex was trading 1% lower at 33,693 points at 01:07 pm.
According to Reuters report, a survey of global and local dealers showed that India's sugar production is likely to rise to a record 29.2 million tonnes in the 2017/18 season, up nearly 12% from a previous estimate as Maharashtra's output could more than double. CLICK HERE TO READ FULL REPORT
Even as sugar production is estimated to grow by 33% in the sugar year 2018(SY), beginning from October 1, the operating profits of mills are likely to take a hit this fiscal due to higher cost of cane production, ICRA said in a report.
However, ICRA said, there might be renewed pressure on the sugar prices, especially if the final production would be higher than the current estimates of around 27 million tonne. CLICK HERE TO READ FULL REPORT
Balrampur Chini Mills tanked 10% to Rs 105 on the BSE in intra-day trade after the stock turning ex-date for share buyback.
The Company has fixed March 06, 2018 as the record date for determining the entitlement and the names of the eligible shareholders / beneficial owners to whom the letter of offer will be sent and who will be eligible to participate in the buyback.
The board of directors of Balrampur Chini Mills at their meeting held on February 21, 2018 had approved buy-back of fully paid up equity shares upto 6.6 million equity shares having face value of Re 1 each at a price of Rs 150 per equity share.
The Promoter and Promoter group intend to participate in the buy-back of equity shares of the company. The shareholding of the Promoter and Promoter group as on December 31, 2017 is upto 40.94% of the total equity of the company.