Davangere Sugar Company Limited increases Authorized Share Capital and appoints Cost Auditor
Davangere Sugar Company Limited has approved several significant corporate actions following the meeting of its Board of Directors held on July 28, 2026. The decisions include increasing the company's authorized share capital and appointing a specialized Cost Auditor for the upcoming financial year.The Board reviewed and sanctioned multiple strategic matters, including the increase in Authorized Share Capital and the restructuring possibilities involving loan conversions into equity shares or convertible warrants. Furthermore, the meeting approved the incorporation of overseas step down subsidiaries and wholly owned subsidiaries.
Capital Increase Details
The Company's Memorandum of Association (MOA) has been altered to reflect a substantial increase in authorized capital. The previous Authorized Share Capital stood at Rs. 200,00,00,000 (Rupees Two Hundred Crore Only). This has been increased to Rs. 450,00,00,000 (Rupees Four Hundred Fifty Crore Only).The details of the capital alteration are as follows:
| Clause No | Existing Authorized Share Capital | Revised Authorized Share Capital |
|---|---|---|
| V | Rs. 200,00,00,000 (Rupees Two Hundred Crore Only) divided into 200,00,00,000 Equity Shares of Rs. 1/- each. | Rs. 450,00,00,000 (Rupees Four Hundred Fifty Crore Only) divided into 450,00,00,000 Equity Shares of Rs. 1/- each. |
Appointment of Cost Auditor
The Board of Directors appointed Mr. M. R. Krishna Murthy, a qualified Cost Accountant (Firm Registration No.: FCMA7658), as the Cost Auditor for the Financial Year 2026-27. This appointment was made based on the recommendation of the Audit Committee.Mr. Murthy holds a Graduate in Science & Law from Bangalore University and is a Fellow Member of The Institute of Cost Accountants of India (ICMAI). He has extensive experience, having held various management positions at M/s National Textile Corporation (APKK & M) Ltd. for 31 years before retiring under VRS as General Manager (Finance), overseeing 16 Textile Mills across four states.
His professional expertise includes conducting Cost Audit, Internal Audit, Concurrent Audit, and GST Audits in various economic sectors. He has also audited borrowers of multiple PSU banks, including State Bank of India, Canara Bank, and Union Bank of India.
Loan Conversion to Warrants
The Board approved the conversion of existing loans into equity shares and/or Convertible Share Warrants. Under this issuance, a value of Rs. 40,11,69,768.24 was converted into warrants. The warrants were issued at an issue price of Rs. 3.82 per warrant, amounting to a total allotment of 10,50,18,263 warrants.The designated investors for this preferential allotment include Mr. Ganesh Shivashankarappa Shamanur (Promoter) and Mr. Abhijith Ganesh Shamanur (Promoter).
DAVANGERE Stock Price Movement
Davangere Sugar Company Limited shed value today, with shares settling at ₹3.17 after the stock declined by 3.64% in post-market trading. The drop occurred amidst heavy interest, as the equity traded a total of 7.22 million shares.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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