PRUDENTIAL SUGAR CORPORATION LIMITED SHARE
ABOUT PRUDENTIAL SUGAR CORPORATION LIMITED
PRUDENTIAL SUGAR CORPORATION LIMITED is engaged in the business of manufacture of sugar and allied products. It has a capacity of manufacturing 2500 Tons of Cane per Day. The company set up its first modern integrated sugar plant in 1994 to manufacture white crystal sugar. The plant of the company is located in Nindra, Andhra Pradesh. The company’s plant also has a facility to power co-generation.
The company also manufactures alcohol through molasses fermentation. The ethanol products include rectified spirit, industrial alcohol, extra neutral alcohol, anhydrous alcohol.
The equity shares of the company were listed on the Bombay Stock Exchange and National Stock Exchange. But now the trading in the shares of the company has been suspended.
INCORPORATION DETAILS
|
CIN |
L15432TG1990PLC032731 |
|
Registration Date |
03 December 1990 |
|
Category/Sub-category of the Company |
Company Limited by Shares |
|
Address of the Registered office and contact details |
“Akash Ganga” Plot No.144, 4th Floor Srinagar Colony, Hyderabad - 500 073. |
|
Name, Address and Contact Details of Registrar and Transfer Agent, if any |
R&D Infotech (P) Ltd. 1st Floor, 7A, Beltala Road (Naresh Mitra Sarani) Kolkata - 700 026. |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
|
Name and Description of main products/services |
NIC Code of the product/service |
% to total turnover of the Company |
|
Sugar |
17011 |
100% |
BOARD OF DIRECTORS
Mr. Vinod Baid (Chairman)
Mr. Kishore Jhunjunwala (Independent Director)
Mr. K. Subba Rao (Whole Time Director)
Ms. Sadhana Bhansali (Independent Director)
Mr. Y. Ravinder Reddy (Independent Director)
PARTICULARS OF SUBSIDIARY COMPANIES
|
Name of the Company |
% of shares held |
|
Prudential Ammana Sugars Limited |
99.99% |
PRUDENTIAL SUGAR CORPORATION LIMITED SHARES DETAILS
|
Total Available Shares: |
3,57,52,000 |
|
Face Value: |
Rs. 10 Per Equity Share |
|
ISIN: |
INE024D01016 |
|
PAN No. |
AAACP4338D |
|
GST No. |
37AAACP4338D1ZN |
|
Lot Size: |
500 Shares |
|
Last Traded Price |
Rs. 13 |
|
Market Cap: |
Rs. 46.48 Crore |
SHAREHOLDING PATTERN
(As on 31-03-2021)
|
SHAREHOLDER’S NAME |
NO. OF SHARES |
% OF TOTAL SHARES OF THE COMPANY |
|
Promoters Shareholding |
2,11,02,599 |
59.02% |
|
Public Shareholding |
1,46,49,401 |
40.98% |
|
Total |
3,57,52,000 |
100.00% |
INDUSTRY OUTLOOK
From the last two years, India has become the world’s largest producer of sugar, as Brazil has diverted more of its production to produce ethanol. Therefore, Indian Sugar producers are getting better prices for their products. The sugar sector follows a sugar season cycle from October to September of next year.
According to the Indian Sugar Mills Association (ISMA), around 502 sugar mills have started their operations from 1st October 2020 to 28th February 2021. They altogether produced 23.37 million tonnes of sugar as of 28th February 2021. From October 2020 to mid-February 2021, sugar production in India increased by 22.9% to 20.9 million tonnes on account of 74% and 26.9% production growth in Maharashtra and Karnataka, respectively, backed by increased sugarcane area, better yields among others. Sugar output in India is expected to increase by 11.7% to 32 million tonnes during the Sugar Year 2020-21 (October 2020 -September 2021) on account of higher production in Maharashtra and Karnataka.
Cabinet Committee on Economic Affairs (CCEA), on 16 December 2020, approved assistance of about Rs. 3,500 crore towards sugar export for the sugar season 2020-21 to curtail the sugar glut situation in India and to reduce the quantum of sugarcane arrears owed by the sugar industry. For Sugar Year 2021, India is likely to export 5.50 million tonnes of sugar. In fact, within just two months, companies have already exported 4.80 million tonnes of sugar.
The sugar prices in the domestic market are unlikely to witness any major improvement due to huge carry-over stocks of about 10.6 million tonnes and an expected 10.2% growth in production to 32 million tonnes in the current sugar year 2020-21. Thus the prices are expected to remain largely range-bound only backed by an MSP of Rs.31 per kg. Domestic prices are unlikely to increase unless sugar MSP is hiked by the government.
The global sugar market to exhibit stable growth during 2020-2025. Over the next ten years, global sugar production is projected to expand by 14%, from 178 Mt in the base period (September 2016 to October 2019) to 207 Mt in 2028, with 85% of the projected increase originating in developing countries.
FAQ's on Prudential Sugar Corporation
Q: What
is the face value of Prudential Sugar Corporation Ltd shares?
Answer: The face value of Prudential Sugar Corporation Ltd is ₹10 per
equity share.
Q: How
can I buy Prudential Sugar unlisted shares through WWIPL?
Answer: Investors can complete KYC, confirm the transaction details with
WWIPL, transfer funds, and receive shares directly in their Demat account.
Q: Why should
I buy Prudential Sugar shares through WWIPL?
Answer: WWIPL offers transparent execution, secure transactions,
seamless Demat transfer, and structured support for unlisted equity investing.
Q: Is
investing in Prudential Sugar Corporation Ltd a good idea?
Answer: Investors typically evaluate Prudential Sugar based on sugar
cycle economics, by-product revenue (molasses/bagasse/ethanol), asset base, and
profitability trends.
Q: Why do
investors buy Prudential Sugar shares before a potential listing?
Answer: Investors seek early exposure to a cyclical commodity business,
aiming to benefit from sugar price cycles and potential valuation re-rating.
Q: What
business does Prudential Sugar Corporation Ltd operate in?
Answer: The company manufactures sugar and allied products, including
molasses and bagasse, and operates within the broader sugar and ethanol-linked
value chain.
Q: What
makes Prudential Sugar different from other sugar companies?
Answer: Its earnings are influenced by sugar cycles and by-product monetization,
which adds partial diversification through ethanol and co-generation linkages.
Q: What
are the key growth drivers for Prudential Sugar Corporation Ltd?
Answer: Sugar cycle upswings, ethanol blending demand, export
opportunities, and stable domestic pricing support are key drivers.
Q: What
factors affect the valuation of Prudential Sugar shares?
Answer: Sugar realizations, cane costs, ethanol margins, capacity
utilization, and cyclical inventory levels drive valuation.
Q: Are
Prudential Sugar shares available in Demat form?
Answer: Yes. Shares purchased through WWIPL are transferred directly to
the investor’s Demat account.
Q: Can I
sell Prudential Sugar shares through WWIPL?
Answer: Yes. WWIPL facilitates both buying and selling of unlisted shares,
subject to liquidity availability.
Q: What
documents are required to buy Prudential Sugar shares through WWIPL?
Answer: PAN, Aadhaar, Client Master Report (CMR), and bank account
details are typically required for execution.
Q: What
are the risks of investing in Prudential Sugar shares?
Answer: Key risks include sugar price volatility, regulatory
intervention in sugar/ethanol pricing, cyclical earnings, and low liquidity in
unlisted markets.
Q: How
does WWIPL help investors track Prudential Sugar investments?
Answer: WWIPL provides transaction support, periodic updates, and
assistance in monitoring unlisted equity positions.
Q: How
long does it take for Prudential Sugar shares to be credited to Demat after
purchase?
Answer: Shares are generally credited after settlement and verification
through the depository system.
Q: What
should investors evaluate before investing in Prudential Sugar Corporation Ltd?
Answer: Investors should assess sugar cycle positioning, cost structure,
ethanol exposure, leverage levels, and earnings stability across cycles.
Q: Can
Prudential Sugar benefit from India’s ethanol blending and sugar export demand?
Answer: Yes. Rising ethanol blending mandates and periodic export
support can improve demand visibility and margin stability over time.
