Davangere Sugar Company Limited (DSCL) is set to take a significant step in its capital raising efforts, as the company's Rights Issue Committee prepares to meet on July 30, 2025. The meeting aims to finalize key parameters for the upcoming rights issue of equity shares, which is expected to raise up to ₹150.00 crore.

Rights Issue Details

The Rights Issue Committee will convene to determine crucial aspects of the offering, including:

• Record date
• Issue price
• Entitlement ratio
• Other terms and conditions

This meeting follows the Board of Directors' approval of the rights issue on July 25, 2025, where they superseded a previous rights issue approval from September 6, 2024.

Background and Purpose

The company's decision to proceed with a rights issue comes as part of its broader fundraising strategy. Key points to note:

• The rights issue will not exceed ₹150.00 crore (₹15,000.00 lakhs)
• It represents a reduction from the previously approved amount of ₹400.00 crore in September 2024
• The funds raised will be through the issuance of fully paid-up equity shares with a face value of ₹1 each

Regulatory Compliance

DSCL has emphasized that the finalization of terms is subject to receiving in-principle approvals from stock exchanges and other required regulatory authorities. The company has already taken steps to ensure compliance with regulatory requirements:

• Submitted the Draft Letter of Offer (DLOF) to BSE Limited and National Stock Exchange of India Limited on July 25, 2025
• Uploaded the DLOF on the company's website for public access

Next Steps

Investors and stakeholders should note that the specific details of the rights issue, including the issue price, rights entitlement ratio, and timing, will be determined by the Rights Issue Committee. These details will be disclosed once finalized and after receiving necessary approvals.

The company has stated that this rights issue is not an additional offer but a fresh approval that supersedes the previous announcement made in September 2024.

As Davangere Sugar Company Limited moves forward with this capital raising initiative, market participants will be keenly watching for the outcome of the July 30 meeting and subsequent announcements regarding the rights issue terms.

Davangere Sugar Company Limited has announced a significant revision to its previously approved rights issue, scaling down the fundraising target from Rs 400 crore to Rs 150 crore. The decision was made during a board meeting held on July 25, 2025, superseding an earlier approval from September 6, 2024.

Key Details of the Revised Rights Issue

• Issue Size: The board has approved a rights issue to raise up to Rs 150 crore (Rs 15,000 lakhs).
• Share Type: Fully paid-up equity shares with a face value of Re 1 each.
• Eligibility: Offered to eligible equity shareholders as of a record date to be determined later.
• Previous Approval: This new decision replaces the earlier approval for a Rs 400 crore (Rs 40,000 lakhs) rights issue.

Important Considerations

• The company clarified that this is not an additional offer but a fresh approval replacing the earlier decision.
• Detailed terms, including the issue price, rights entitlement ratio, record date, and payment terms, will be decided by the board in due course.
• The rights issue is subject to necessary regulatory approvals.

Regulatory Compliance

The company has made this announcement in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details have been disclosed as per the SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Board Meeting Details

Next Steps

The exact number of securities to be issued will be determined after receiving in-principle approval from the Stock Exchanges. Investors and stakeholders are advised to wait for further announcements regarding the specific terms of the rights issue.

This revised rights issue represents a significant change in Davangere Sugar Company's capital raising strategy, potentially impacting its future growth plans and financial structure. Shareholders and potential investors should closely monitor further developments and announcements from the company regarding this rights issue.