With their stocks struggling, the country's top sugar barons are ramping up their shareholding in their companies. Companies such as Balrampur Chini, Dhampur Sugars, Simbhaoli Sugars and Dwarikesh Sugar are all issuing warrants to their promoters which, on conversion, will give them a higher stake.
DCM Shriram Industries , too, is issuing 700,000 warrants to its promoters, Tilak Dhar and his brothers, which will raise their shareholding from 32.54 per cent to 42 per cent, though this has been challenged in the courts by shareholder Harish Bhasin, who has mounted a takeover bid on the company.
Though share prices of sugar companies have started rising in the last month or so, these had crashed almost 50 per cent in the previous 12 months thanks to the fall in sugar prices resulting from record sugar production.
However, the sugar cycle is projected to improve later this year as the next sugarcane crop will be smaller and the shares have started rising in anticipation.
According to experts, as the conversion price of warrants is a mark up on existing prices, this is good time for businessmen to ramp up