ICICI Bank Limited has disposed of a 2.17% stake in Shree Renuka Sugars through open market sales. The transaction involved the sale of 4,61,98,815 equity shares, with the last tranche executed on August 20, 2026.

The disposal reduces the lender’s total holding in the sugar and ethanol producer to 6.79% of the issued and paid-up equity share capital. Prior to this sale, ICICI Bank held 8.96% of the company’s voting rights.

Transaction Details

The sale was conducted in multiple tranches on the open market. The bank confirmed that none of the shares sold were encumbered by pledge, lien, or non-disposal undertakings. Similarly, no warrants or convertible securities were part of the transaction.

Regulatory Disclosure

The disclosure was made in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was submitted to BSE Limited and National Stock Exchange of India Limited on August 21, 2026.

Shree Renuka Sugars’ total equity share capital remains unchanged at Rs. 2,12,84,89,773, comprising 2,12,84,89,773 equity shares of face value Rs. 1 each. ICICI Bank is not part of the promoter or promoter group of the target company.

Shree Renuka Sugars reported a consolidated net loss of ₹2,515 million for the quarter ended June 30, 2026 (Q1FY27), a slight improvement from the ₹2,636 million loss recorded in the corresponding period of the previous year. The Wilmar Group subsidiary’s consolidated revenue from operations rose 5.5% year-on-year to ₹21,313 million from ₹20,201 million, driven primarily by strong performance in its distillery segment. Despite top-line growth, high finance costs and foreign exchange losses continued to pressure margins, keeping the company in a net loss position for the quarter.

The Board of Directors, chaired by Managing Director and CEO Susheel Kumar Kamboj, approved the unaudited financial results on August 5, 2026. The results were reviewed by the Audit Committee on August 4, 2026, and audited by S R B C & CO LLP, the statutory auditors of the Company, pursuant to Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that the company continues to operate on a going concern basis, supported by significant guarantees from its parent entities.

Financial Performance Highlights

The company’s operational results reflect the seasonal nature of its sugar milling business, which is currently in an off-season phase. While sugar-milling revenue declined, the refinery segment remained robust with revenue at ₹12,097 million. The distillery segment emerged as the primary growth driver, with revenue surging to ₹4,737 million from ₹1,442 million in the year-ago period. The following table summarises the key financial metrics for the quarter:

Finance costs remained elevated, totaling ₹1,597 million on a standalone basis and ₹1,820 million on a consolidated basis. Foreign exchange losses added another ₹258 million (standalone) and ₹262 million (consolidated) to the expense line. Other income stood at ₹145 million standalone and ₹111 million consolidated, providing minimal offset to the operational losses.

Balance Sheet and Liquidity Position

As of June 30, 2026, the company’s current liabilities exceeded its current assets by ₹23,593 million on a standalone basis and by ₹36,907 million on a consolidated basis. The standalone net worth stood at negative ₹14,939 million, while the consolidated net worth was negative ₹29,537 million. Total outstanding debts were reported at ₹55,664 million as of March 31, 2026.

To mitigate liquidity risks, all long-term loans and External Commercial Borrowings (ECBs) are secured by corporate guarantees from the ultimate holding company, Wilmar International Limited. Working capital loans of ₹15,127 million are secured by a pari-passu charge against current assets and a letter of comfort from Wilmar International Limited. Additionally, the Board of Directors of Wilmar Sugar and Energy Pte Ltd., the holding company, has issued a letter of support to meet shortfalls in normal trade-related working capital requirements.

What the Numbers Show

The divergence between revenue growth and profit deterioration highlights the company’s sensitivity to cost structures during off-season periods. While the distillery segment delivered a segment result of ₹821 million (standalone), turning profitable from a loss of ₹91 million in the prior year, this gain was insufficient to cover the aggregate losses from sugar milling (₹373 million loss) and refining (₹986 million loss). The high interest service coverage ratio deficit of (1.39) times indicates that operating earnings are currently inadequate to service interest obligations, reinforcing the reliance on parent-company guarantees for financial stability.