Shree Renuka Sugars - Outcome Of Board Meeting

Shree Renuka Sugars Ltd has informed that the Board of Directors of the Company at its meeting held on July 26, 2007, inter alia, has considered and approved the following matters subject to the approval of the shareholders:

1. Approved a proposal for investing an amount upto Rs 37 Crores by way of subscription, purchase or otherwise for majority shares of the equity of KBK Chem Engineering Pvt Ltd (KBK) with a further option to subscribe for warrants convertible for an additional investment for Rs 16 crores. KBK is an engineering Company, primarily engaged in providing turnkey solutions in the field of Distilleries, Ethanol plant and Bio-fuels.

2. Approved a Proposal for acquisition of stand alone Ethanol plant at Dhanuka Petro-Chem, a division of Dhanuka Cold Storage Pvt Ltd located at Khopoli, Maharashtra at a total consideration of Rs 55.7 Million. The said unit is having an installed capacity for manufacture of 100 klpd of Ethanol and is strategically located near JNPT port. The Board also approved an increase in the ethanol capacity of this unit from 100 klpd to 250 klpd, in the near future.

3. Approved the proposal to look at acquisitions and / or investments overseas.

4. Approved further investments in Ethanol, co-generation and sugar refining amounting to Rs 230 crores.

5. Pursuant to the provisions of Section 81(1A) of the Companies Act, 1956 and subject to pricing, payment and conversion terms as per SEBI (Disclosure and Investor Protection) Guidelines, 2000, and subject to all necessary approvals, consents, permissions and / or sanctions as may he necessary, considered and approved the issue of:

a) 10,00,000 Equity Shares of Rs 10/- each, on preferential basis to Promoters / Promoter Companies;

b) 3,00,000 and 1,00,000 warrants of Rs 10/- each on preferential basis to Shree Renuka Sugars Development Foundation and Shree Renuka Sugars Employee Welfare Trust, respectively;