Bajaj Hindusthan Sugar Ltd on Thursday said it has acquired a 98 per cent stake in Phenil Sugars by converting existing preference shares worth Rs 350 crore into equity shares. The company has converted 3,50,03,927 redeemable non-cumulative convertible preference shares of Rs 100 amounting to Rs 350.04 crore into equity shares of 35,00,39,270 equity shares of Rs 10 each of PSL.

In a regulatory filing, Bajaj Hindusthan Sugar Ltd informed that the company has acquired 98.01 per cent shareholding (post-conversion) of Phenil Sugars Ltd (PSL) by way of conversion of existing preference shares into equity shares.

The company said that “there is a substantial appreciation in the value of assets (mainly land) of PSL’s both plants at Basti and Govindnagar.”

Accordingly, Bajaj Hindusthan is to take control of Phenil Sugars Ltd to realise its investments.

After taking control of PSL, Bajaj Hindusthan may take the necessary steps to realise the amount by selling the assets of PSL in an appropriate manner and/or putting the assets to appropriate usage.

Bajaj Hindusthan Sugar Ltd, which is part of the Bajaj Group (Kushagra), has 14 sugar plants, all located in Uttar Pradesh. The plants have an aggregate sugarcane crushing capacity of 1,36,000 tonnes crushed per day and an alcohol distillation capacity of 800 kilolitres per day.