{"id":90593,"date":"2026-09-10T12:44:56","date_gmt":"2026-09-10T07:14:56","guid":{"rendered":"https:\/\/newswireindia.in\/index.php\/2026\/09\/10\/davangere-sugar-shares-rise-6-investors-track-ethanol-expansion-fccb-funding-and-uk-foray\/"},"modified":"2026-09-10T12:44:56","modified_gmt":"2026-09-10T07:14:56","slug":"davangere-sugar-shares-rise-6-investors-track-ethanol-expansion-fccb-funding-and-uk-foray","status":"publish","type":"post","link":"https:\/\/newswireindia.in\/index.php\/2026\/09\/10\/davangere-sugar-shares-rise-6-investors-track-ethanol-expansion-fccb-funding-and-uk-foray\/","title":{"rendered":"Davangere Sugar Shares Rise 6%; Investors Track Ethanol Expansion, FCCB Funding and UK Foray"},"content":{"rendered":"

New Delhi [India], September 10:<\/strong> Shares of Davangere Sugar Company Ltd.<\/strong> rose around 6%<\/strong> during trading on September 10<\/strong>, touching an intraday high of \u20b91.85 apiece on the NSE<\/strong>, compared with its previous close of \u20b91.75<\/strong>. The stock has traded between a 52-week high of \u20b95.50 and a 52-week low of \u20b91.74<\/strong>.<\/p>\n

Based on the company’s recently expanded paid-up capital and the prevailing share price, Davangere Sugar falls in the small-cap segment<\/strong>, with its market capitalisation estimated at around \u20b9300\u2013\u20b9320 crore<\/strong>.<\/p>\n

The Karnataka-based company operates an integrated business model spanning sugar manufacturing, ethanol production and co-generation of power<\/strong>. Its recent corporate developments have brought increased investor attention to its expansion plans, capital raising and efforts to build an international business platform.<\/p>\n

Davangere Sugar reported revenue of \u20b9238.8 crore for FY26<\/strong>, representing an increase of 11.1% year-on-year<\/strong>. EBITDA stood at \u20b950.7 crore<\/strong>, translating into an EBITDA margin of approximately 21.2%<\/strong>.<\/p>\n

The company’s distillery business emerged as the largest contributor to revenue during the year, generating \u20b9133.5 crore<\/strong>. The sugar segment contributed \u20b998.9 crore<\/strong>, while co-generation contributed \u20b97.1 crore<\/strong>.<\/p>\n

The increasing contribution from the distillery business highlights the company’s strategy of diversifying beyond traditional sugar manufacturing and increasing its exposure to ethanol and value-added products.<\/p>\n

The company reported revenue of \u20b934.7 crore during the first quarter of FY27<\/strong>, marking a 44.2% year-on-year increase<\/strong>.<\/p>\n

The distillery segment also remained an important contributor, with segment PBIT reported at \u20b915.8 crore<\/strong>. The performance comes as the company continues to scale its ethanol production capabilities and utilise multiple feedstocks.<\/p>\n

One of the company’s significant recent corporate developments has been its $100 million Foreign Currency Convertible Bonds (FCCBs) issue<\/strong>.<\/p>\n

The issue comprises 1,000 unsecured FCCBs with a face value of $100,000 each<\/strong>. The bonds carry a 2% coupon<\/strong> and have a five-year tenor<\/strong>, with a conversion price of \u20b93.60 per equity share<\/strong>.<\/p>\n

The FCCBs were listed on the Afrinex Exchange in Mauritius in July 2026<\/strong>. According to the company’s disclosures, the first tranche of the issue was converted on August 25<\/strong>, resulting in the issuance of approximately 26.59 crore new equity shares<\/strong>. Following the conversion, the company’s paid-up capital increased to around \u20b9169.59 crore<\/strong>.<\/p>\n

The proceeds are expected to provide the company with long-term capital for its expansion initiatives.<\/p>\n

Davangere Sugar has also approved the deployment of approximately $84.95 million into its wholly owned UK subsidiary, Aurevant Global Ltd.<\/strong><\/p>\n

The proposed deployment, funded through the FCCB proceeds, is intended to support opportunities in the global sugar and ethanol markets, including potential mergers and acquisitions.<\/p>\n

The move represents a strategic expansion beyond the company’s established Karnataka-based operating footprint and could provide access to international business opportunities in the sugar and ethanol value chain.<\/p>\n

Another development being tracked by investors is the proposed conversion of unsecured promoter loans into convertible warrants.<\/p>\n

The promoters are set to convert loans worth approximately \u20b940.12 crore into 10.64 crore convertible warrants at an issue price of \u20b93.77 per warrant<\/strong>.<\/p>\n

If fully converted, the transaction is expected to increase promoter shareholding from approximately 41.63% to 45.67%<\/strong>.<\/p>\n

The proposed conversion could also reduce the company’s outstanding unsecured loan obligations while increasing promoter participation in the company’s equity capital.<\/p>\n

Davangere Sugar currently operates a sugarcane crushing capacity of around 4,750 tonnes crushed per day (TCD)<\/strong>, along with 24 MW of co-generation capacity<\/strong>.<\/p>\n

Its distillery has a multi-feed capacity of 65 KLPD<\/strong>, with plans to scale this to 110 KLPD<\/strong>. The facility can utilise feedstocks including molasses, cane juice and grain<\/strong>.<\/p>\n

The company also has a Zero Liquid Discharge system and a carbon dioxide recovery plant<\/strong> as part of its operating infrastructure.<\/p>\n

The expansion of distillery capacity is particularly relevant as ethanol continues to become an increasingly important component of India’s sugar industry<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

New Delhi [India], September 10: Shares of Davangere Sugar Company Ltd. rose around 6% during trading on September 10, touching an intraday high of \u20b91.85 apiece on the NSE, compared with its previous close of \u20b91.75. The stock has traded between a 52-week high of \u20b95.50 and a 52-week low of \u20b91.74. Based on the […]<\/p>\n","protected":false},"author":1,"featured_media":90592,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4443,1462,5000,5001,5002,5003,5004,3448],"class_list":["post-90593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-davangere-sugar","tag-defense-manufacturing-ecosystem","tag-distillery","tag-ethanol","tag-fccb-conversion","tag-paid-up-capital","tag-share-price","tag-small-cap-stocks"],"_links":{"self":[{"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/posts\/90593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/comments?post=90593"}],"version-history":[{"count":0,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/posts\/90593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/media\/90592"}],"wp:attachment":[{"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/media?parent=90593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/categories?post=90593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newswireindia.in\/index.php\/wp-json\/wp\/v2\/tags?post=90593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}