Observations Stock

Is Narendra Murkumbi trying for a backdoor listing of Renuka Energy?

(Full Disclosure:I have shares of Renuka Sugars in my personal and family portfolio)

Ravindra Trading (BSE Scrip Code:504341) is one of the many scrips in BSE which are under suspension.

In Oct 2008, Narendra Murkumbi, promoter of Shree Renuka Sugars made an open offer for the compay.The offer was for  Rs.10/share.

Subsequent to the offer, the control of the company passed on from the original promoters (the Somani group) to Narendra Murkumbi who now holds 73.85% of the stake.

Once Narendra Murkumbi took over, the company got the kiss of life and it started trading coal.

In 2012, the company earned around 1.18 Crores as profits and gave a Rs. 1 dividend to its shareholders.

On Aug 20, 2012, the Board of Directors met and granted in-principle approval for the amalgamation of Shree Renuka Urja Pvt Ltd (under incorporation) and Shree Renuka Energy Limited into the company.

Now, Shree Renuka Energy is a subsdiary of Renuka Sugars.It is setting up a of 3×350 MW Coal Based thermal power plant at village  Vantamuri, in Hukkeri Taluk, in Belgaum District , in Karnataka.

It is headed by J Suresh Kumar (former CFO of Lanco Infratech) who oversaw Lanco’s A$750 million buy of Australia’s Griffin Coal.

While the power plant is still awaiting various permissions and will take time to come up,it appears clear to me that eventually  Ravindra Energy will be renamed as Renuka Energy and investors will be tapped for funds.

Smart moves, Mr.Murkumbi !