Sakthi Sugars soars on selling Orissa-based sugar & distillery units

Sakthi Sugars jumped 5.10% to Rs 16.50 after the company said that it had executed a business transfer agreement (BTA) today for sale of sugar and distillery units in Dhenkanal, Orissa State.

The agreement is with Indian Potash (purchaser) for the selling the units on a going concern on an 'AS IS WHERE IS WHAT IS' basis by way of a slump sale and specifically include the assets, liabilities and the agreed liabilities, except contingent assets and contingent liabilities, for a consideration of Rs 134.10 crore.

The purchaser will participate in the management and operations of the Dhenkanal units immediately on the execution of the BTA.

The effective date of the business transfer agreement is 1st July 2022 and the closing date of the transaction, after fulfilling the conditions precedent to closing, will be prior to 30th September 2022.

Sakthi Sugars is one of the largest producers of sugar in India. The products manufactured by the company include white crystal sugar of grades S30, M30, and L30. The byproducts include molasses, bagasse, and bio compost. The company is also in the business activities of sugar, power, soya products, and industrial alcohol.

The company's standalone net profit declined 71.80% to Rs 19.87 crore on a 39.86% rise in sales to Rs 314.71 crore in Q4 FY22 over Q4 FY21.

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