Sugar stocks are back in the reckoning today with Dalmia Bharat Sugar leading the pack of gainers in the sugar sector as well as on the top five gainers on the BSE.
The stock briefly skimmed the 20% UC of the day at Rs.440.55 and is currently trading at Rs.423 levels, up over 15%.
Almost all sugar stocks are up today on news that the Govt may consider increasing sugar export quota for the current 2022-23 marketing year after assessing the domestic production in January.
Last week, the company emerged as a winner in its bid to acquire plan of Jaiprakash power and cement units. This is expected to be bought by Dalmia at an enterprise value of Rs 5,666 crore.
The company will get clinker, cement and power plants from Jaiprakash Associates which has a total cement capacity of 9.4 Mtpa, which will be with a 6.7mtpa clinker and 280 MW thermal power plant.
These assets are situated in the states of Madhya Pradesh, Uttar Pradesh & Chhattisgarh. With this buy, Dalmia will expand its footprint into the Central Region and will represent a significant step towards realization of its vision to emerge as a pan India cement company with a capacity of 75 mtpa by FY27 and 110?130 Mtpa by FY31.