Mawana Sugars to watch out for on November 21

Mawana Sugars has decided to sell its Titawi Sugar Mill in Uttar Pradesh for Rs 375 crore to Indian Potash, a government-owned fertiliser company. The company had recently roped in JM Financial to find a buyer for the Titawi Mill.

Mawana Sugars will utilise amount of Rs 150 crore towards settlement of sugarcane farmers’ dues and the rest will be used to trim the debt of the company. There would not be any change in the shareholding of Mawana Sugars consequent to the proposed transaction as only a unit of the company is being sold.

On the financial front, Mawana Sugars’ revenue has increased by 5.96 per cent to Rs 187 crore in Q2FY17 compared to same period in previous financial year. The company has posted a net loss of Rs 7.71 crore in Q2FY17 against net profit of Rs 64.92 crore in Q2FY16.

Indian Potash, a leading potash company, had entered the sugar space about five years ago by acquiring small mills from UP Sugar Corporation. Mawana Sugars owns and operates three sugar mills in the sugarcane-rich belt of western Uttar Pradesh. Its three mills together have the capacity to crush 29500 tonnes of sugarcane daily.

The share price of Mawana Sugars increased by 19.89 per cent on bourses; and closed at Rs 43.1 on Friday.