Davangere Sugar Company Limited has published newspaper advertisements confirming the dispatch of its Extra-Ordinary General Meeting (EGM) notice for April 24, 2026. The company filed the newspaper publication details with stock exchanges under Regulation 30, marking a formal step in its capital expansion and fund raising initiatives.

Newspaper Advertisement Publication

The company published notices in both English and regional language newspapers to ensure comprehensive shareholder communication:

Key Proposals for Shareholder Approval

Authorised Share Capital Enhancement

The company proposes to increase its authorised share capital significantly to support future growth initiatives:

This increase will facilitate the company's fund-raising activities and provide adequate headroom for future equity issuances. The proposal requires alteration of Clause V of the Memorandum of Association to reflect the enhanced capital structure.

Enhanced Borrowing Framework

The company seeks approval to significantly expand its borrowing capabilities to support business operations and growth:

This enhanced borrowing framework will enable the company to access diverse funding sources including cash credit facilities, term loans, debentures, commercial papers, and syndicated loans in both rupees and foreign currencies as permitted by law.

Strategic Fund Raising Initiative

International Securities Issuance

The company proposes to raise funds up to USD 100 Million through various international instruments:

The funds will be utilized for strategic growth opportunities, working capital requirements, capital expenditure, acquisition of new units, expansion of sugarcane growing areas, and business diversification initiatives.

Investment Limit Enhancements

To facilitate international fund raising, the company seeks to increase investment limits for foreign investors:

These enhanced limits will provide greater flexibility for foreign investment participation and improve post-listing trading liquidity.

Corporate Governance and Compliance

E-Voting Arrangements

The company has implemented comprehensive e-voting facilities for shareholder convenience:

Shareholders can participate through NSDL's e-voting platform, with detailed instructions provided for both demat and physical shareholding modes.

Meeting Logistics

The EGM notice has been distributed electronically to shareholders as per regulatory requirements. Physical attendance is permitted with proper identification, and proxy voting is available with forms to be submitted 48 hours before the meeting. The company has engaged Integrated Registry Management Services Pvt. Ltd. as the Registrar and Share Transfer Agent for administrative support.

All proposed resolutions require special resolution approval except for the authorised capital increase, which needs ordinary resolution approval. The Board of Directors recommends approval of all proposals, stating that no directors or key managerial personnel have any financial interest in these resolutions beyond their existing shareholding.

Davangere Sugar Company Limited has officially concluded its board meeting held on March 30, 2026, with formal approval for significant distillery capacity expansion. The meeting, conducted at the company's registered office in Davangere, Karnataka, from 11:30 AM to 3:30 PM, resulted in strategic decisions communicated to stock exchanges under SEBI Regulation 30.

Board Meeting Outcome

The board of directors convened at the registered office located at 73/1, Post Box No. 312, Shamanur Road, Davangere-577004, to deliberate on the capacity expansion proposal. Company Secretary Uma Singh digitally signed the official communication to BSE Limited and National Stock Exchange of India Limited.

Distillery Capacity Expansion Details

The board approved a substantial addition to the existing distillery capacity, representing a significant expansion in production capabilities. The expansion aligns with rising ethanol demand and supportive government policies in the renewable energy sector.

Strategic Rationale and Market Positioning

The capacity expansion decision stems from the company's strategy to capitalize on rising ethanol demand and favorable government policies supporting renewable energy initiatives. With existing capacity utilization at 96%, the proposed addition of 85 KLD will more than double the company's distillery production capabilities.

The investment of Rs. 127.50 crores will be financed through Foreign Currency Convertible Bonds (FCCB), indicating the company's access to international capital markets. The 18-month implementation timeline suggests an aggressive expansion schedule to capture market opportunities in the ethanol sector.

Regulatory Compliance and Communication

The announcement follows strict compliance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, ensuring transparent disclosure of capacity addition details to stakeholders and regulatory authorities.