Davangere Sugar Company Approves $100 Million Foreign Currency Convertible Bond Issue
Davangere Sugar Company Limited has approved a significant fundraising initiative, approving the issue of Unsecured Foreign Currency Convertible Bonds (FCCBs) with an aggregate principal amount of USD 100 million. The approval follows previous communications regarding the company's plans to raise capital through this international offering mechanism.The Board of Directors confirmed the details of the FCCBs, which will be issued comprising 1,000 bonds, each valued at USD 100,000. These bonds carry a coupon rate of 2% per annum and were set to be issued at a 15% discount to their principal amount, resulting in an aggregate issue price of US$85 million.
The company plans to open the FCCB issue on July 6, 2026, pending the acquisition of the ISIN from Afrinex Stock Exchange, Republic of Mauritius. The bonds are scheduled to mature on July 9, 2031, providing a five-year tenure. The Relevant Date for the purpose of the FCCB Issue was set as July 3, 2026.
The offering and conversion details were structured in line with the FCCBs Guidelines and established regulatory benchmarks. The issuance is targeted at international investors and will be listed on AFRINEX STOCK EXCHANGE (AFRINEX LIMITED), REPUBLIC OF MAURITIUS.
A detailed overview of the terms for the Foreign Currency Convertible Bonds is presented below:
| Particulars | Details |
|---|---|
| Type of Securities | Foreign Currency Convertible Bonds (FCCBs) |
| Total Principal Amount | USD 100,000,000 |
| Number of Bonds | 1,000 bonds at USD 100,000 each |
| Aggregate Issue Price | US$85,000,000 |
| Coupon Offered | 2.0% per annum |
| Allotment Date | July 9, 2026 |
| Maturity Date | July 9, 2031 |
| Listing Exchange | AFRINEX STOCK EXCHANGE, REPUBLIC OF MAURITIUS |
The potential equity shares underlying the FCCBs upon conversion were estimated at approximately 264,55,77,778. This calculation was based on a regulatory floor price of INR 3.60 and utilized the RBI exchange rate of 95.2408 for the issue price, which equates the USD 100 million equivalent to approximately INR 952,40,80,000.
The company confirmed that there are currently no defaults relating to coupon payments on the FCCBs.
DAVANGERE Stock Price Movement
On Friday, Davangere Sugar Company Limited shares edged higher to settle at ₹3.60, gaining 0.56% in the closing session. The stock saw a total traded volume of 2.35 million shares during the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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