Davangere Sugar Company Limited (DSCL), a fully integrated sugar, ethanol, and renewable power manufacturer based in Karnataka, has announced a rights issue of up to ₹149.22 crore and recently held a virtual meeting with analysts and institutional investors. These developments signal the company's focus on growth and transparency in its operations.

Rights Issue Details

DSCL is proposing a rights issue of up to ₹149.22 crore at ₹3.05 per equity share. The rights entitlement ratio is set at 13 shares for every 25 shares held. The issue is scheduled to open on August 14, 2025, and close on August 29, 2025. The company intends to use the proceeds for loan repayment and general corporate purposes, which could potentially enhance its profitability by reducing debt burden.

Virtual Investor Meeting

On August 19, 2025, DSCL conducted a virtual group meeting with analysts and institutional investors from 4:00 PM to 5:00 PM, which included a Q&A session. The company assured that no unpublished price-sensitive information was shared during the interaction, maintaining compliance with regulatory requirements.

Company Overview

DSCL operates with the following capacities:

• Sugar production: 4,750 TCD (Tonnes Crushed per Day)
• Ethanol production: 65 KLPD (Kilo Litres Per Day)
• Co-generation power: 24.45 MW

The company's manufacturing facility is spread across 165 acres in Kukkuwada, Karnataka, strategically located within a sugarcane cultivation belt of 30,000 acres and supported by a network of around 5,000 farmers.

Financial Performance

For the fiscal year 2025 (FY25), DSCL reported:

Expansion Plans

DSCL has outlined several growth initiatives:

1. Expanding ethanol capacity from 65 KLPD to 85 KLPD, with plans for further expansion in coming years.
2. Increasing sugarcane cultivation by 15,000 acres to strengthen its raw material supply chain.
3. Maximizing ethanol output during off-crushing seasons to optimize capacity utilization.

Operational Highlights

The company's integrated business model encompasses sugar production, ethanol manufacturing, and power generation. In FY25, DSCL:

• Crushed 1.82 lakh MT of sugarcane
• Achieved a sugar recovery rate of 8.87%
• Produced 1.73 crore liters of ethanol
• Generated 2.56 crore KWh of power

Sustainable Practices

DSCL emphasizes sustainability in its operations:

• Operates a zero-waste approach with effluent treatment and by-product recovery
• Utilizes bagasse-based energy for a circular economy model
• Plans to set up a 35 TPD CO₂ plant to convert emissions into food-grade CO₂ and dry ice

Market Position

The company is well-positioned to benefit from India's growing ethanol market, which is expected to reach USD 10.07 Billion by 2033, growing at a CAGR of 14.40% from 2025 to 2033. This growth is supported by government initiatives promoting ethanol blending in petrol, which reached the 20% target in 2025, five years ahead of the original schedule.

As Davangere Sugar Company Limited moves forward with its rights issue and expansion plans, it aims to capitalize on the favorable industry trends and government policies supporting the sugar and ethanol sectors in India. The company's integrated operations and focus on sustainability position it well for future growth in the evolving market landscape.

Davangere Sugar Company Limited (DSCL) has unveiled plans for a significant rights issue, aiming to raise up to INR 149.22 crore from its existing shareholders. This strategic move, approved by the company's Board of Directors on July 25, 2025, marks a pivotal moment for the sugar manufacturer as it seeks to strengthen its financial position.

Rights Issue Details

The rights issue, which allows existing shareholders to purchase additional shares at a potentially discounted price, has been meticulously planned through a series of corporate actions:

• Approval Process: Following the initial board approval, the Rights Issue Committee held meetings on July 31 and August 4, 2025, to finalize the details.
• Record Date: August 6, 2025, has been set as the record date to determine eligible shareholders for the rights issue.
• Public Announcement: In compliance with SEBI regulations, DSCL published advertisements on August 11, 2025, in two national daily newspapers:
  1. Financial Express (English)
  2. Jansatta (Hindi)

Regulatory Compliance

The company has emphasized its commitment to regulatory compliance, stating that the rights issue will be conducted in accordance with the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements (ICDR) Regulations, as well as other applicable laws and circulars issued by SEBI.

Transparency Measures

In a move towards transparency, Davangere Sugar Company has made the following efforts:

• Website Update: The rights issue information has been uploaded on the company's official website ( http://www.davangeresugar.com ).
• Stock Exchange Notifications: Both the BSE Limited and the National Stock Exchange of India Limited have been informed about the rights issue and the subsequent newspaper publications.

Company Background

Davangere Sugar Company Limited, with its registered office in Davangere, Karnataka, is a key player in the Indian sugar industry. The company's proactive approach to capital raising through this rights issue suggests a focus on growth and operational enhancement.

While the specific use of funds raised through this rights issue has not been disclosed, such capital infusions are typically aimed at debt reduction, capacity expansion, or working capital requirements in the sugar industry.

Shareholders and potential investors are advised to keep an eye on further announcements from the company regarding the pricing and ratio of the rights issue, which are crucial details yet to be revealed.