Azim Premji Portfolio: A top investor makes a new entry into this sugar stock during the June quarter – what you need to know?

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Billionaire investor Azim Premji, who is a former chairman of IT major Wipro, took up a new position in the sugar company – Balrampur Chini Mills Limited in the June 2022 quarter, the company’s shareholding scheme available showed on BSE.

According to Balrampur Chini’s June holding pattern, Azim Premji Trust acquired 25,23,641 shares, representing a 1.24% stake in the company. The philanthropist’s company bought those shares for more than Rs 96.2 crore, a stock analysis website trendlyne.com mentioned.

In addition to adding Balrampur to its portfolio during the June quarter, the ace investor cut its stake by 0.02% in its founding company – Wipro, trendlyne.com showed. Premji falls under the holding company promoter of Wipro and owns almost 80% of the shares of the fourth largest IT services company.

Renowned investor Premji and his associates publicly own 3 shares with a net worth of over Rs 166,252.7 crore as of July 28, 2022, according to trendlyne.com. Apart from Balrampur Chini and Wipro, the investor also owns around 1.5% stake in Tube Investments of India Ltd, as per the June quarter.

The sugar sector has been the most lucrative thanks to the government’s initiative to blend ethanol in fuel. In March, the government extended the loan disbursement deadline for ethanol projects under different programs until September 30, 2022.

In addition, rising crude oil prices have brought sugar companies under discussion, in an effort to blend ethanol, a by-product of sugar, into the fuel as much as possible. Earlier in June, Prime Minister Modi said India had reached 10% ethanol in gasoline five months ahead of schedule.

Phillip Capital Research, in its report on the sugar sector, listed important triggers for the industry: ethanol being a savior for the sugar industry; the management of the global sugar deficit and the future of the sector’s value addition and cogeneration.

Sugar companies generate additional revenue by selling excess electricity, mainly to state power boards and most states have started lowering power purchase prices, which has reduced cogeneration revenue , the report further states.

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