Davangere Sugar Company Ltd. Board Approves USD 100 Million Fundraising and Capacity Expansion
Davangere Sugar Company Ltd. announced on March 30, 2026, that its Board of Directors approved a fundraising initiative and an expansion of its distillery capacity.The company is authorized to raise funds up to USD 100 million or its equivalent in Indian Rupees or other foreign currencies through various instruments. These include, but are not limited to, foreign currency convertible bonds (FCCB), external commercial borrowings (ECB), convertible bonds, debentures, warrants, or other equity-linked securities. The funds can be raised in one or more tranches, subject to necessary approvals.
The Board also approved an increase in the company's authorized share capital from Rs. 150,00,00,000 divided into 150,00,00,000 equity shares of Rs. 1 each to Rs. 200,00,00,000 divided into 200,00,00,000 equity shares of Rs. 1 each. This change requires shareholder approval.
Additionally, the Board approved the addition of 85 kiloliters per day (KLDP) to the existing distillery capacity, which currently stands at 65 KLDP with a utilization rate of 96%. The expansion, requiring an investment of Rs. 127.50 crores funded through FCCB funding, is expected to be completed within 18 months. This expansion is intended to capitalize on rising ethanol demand and supportive government policies.
| Sr. No. | Particulars | Details |
|---|---|---|
| 1 | Existing capacity | 65 KLDP |
| 2 | Existing capacity utilization | 96% |
| 3 | Proposed capacity addition | 85 KLDP |
| 4 | Period within which the proposed capacity is to be added | Proposed capacity to be added in 18 months |
| 5 | Investment required | Rs. 127.50 Crores |
| 6 | Mode of financing | FCCB Funding |
| 7 | Rationale | To seize the opportunity presented by rising ethanol demand and supportive government policies |
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