Shree Renuka Sugars Ltd saw its shares surge more than 2% on October 9 as market participants reacted to its earlier announcement regarding acquiring Anamika Sugar Mills.

Shares of the sugar refiner jumped nearly 2.3% on Monday to an intraday high of Rs 55.15. At 12:05 pm, the stock was trading at Rs 54.30, up 0.74% from the previous closing price on the National Stock Exchange (NSE).

The sugar company announced in an exchange filing dated October 6 that it had completed the acquisition of 5,00,48,589 equity shares of Anamika Sugar Mills at Rs.47.05 per share for a total consideration of Rs 235.5 crore. 

The acquisition would enable it to access existing sugarcane catchment areas, leading to a significant reduction in time for setting up the plant and establishing its presence in one of the largest sugar-producing states, Uttar Pradesh, further helping it to cater to the North and East India markets. Another benefit behind the acquisition is to help the company is the easy access to skilled and unskilled labour. 

Shree Renuka Sugars is a fully integrated public company that manufactures and markets sugar, power and ethanol. In comparison, Anamika Sugar Mills is a private company engaged in the cultivation, manufacturing, processing, refining, distribution, marketing and trading of sugar, sugar products and byproducts.