Share price of Shree Renuka Sugars was locked in 5 percent upper circuit today after the company's board approved the proposal for raising funds. The share has gained 35.51% in 7 days. The stock closed 5% higher at Rs 6.03 against previous close of Rs 5.75 on BSE. The small cap stock has lost 41% in one year and 29% since the beginning of this year.
Market cap of the firm rose to Rs 1,155 crore. The stock stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. In a regulatory filing on June 3, the company said its board approved the proposal for raising funds from its holding company Wilmar Sugar Holdings through external commercial borrowings (ECB) to refinance existing debts.
"The board also passed resolutions for increasing the borrowing limits under Section 180(1)(c) of the Companies Act, 2013 (the Act) from the existing Rs 6,000 crore to Rs 10,000 crore, and the corresponding limits for creating a charge on the assets of the company to secure such borrowings under Section 180(1)(a) of the Act," the company said.
The said approval of the board to increase such limits is subject to the approval of the shareholders of the company.