Davangere Sugar to raise Rs 400 crore via rights issue - Check details

Davangere Sugar Company has informed exchanges that its board has proposed the issue of equity shares on the right basis for an amount aggregating up to Rs 400 crore on a rights basis to the existing shareholders of the company to meet its capital requirements.

"the Board of Directors of the Company in its meeting held on September 06th 2024, subject to the approval of the Shareholders of the Company, proposed to raise funds by issue of Equity Shares on right issue basis up to Rs. 400 Crores," the company said in an exchange filing.

Earlier, the company informed exchanges that it is in the process of commissioning a new CO2 plant. The company said that the new plan will come up with an investment of Rs 3 core and will be financed through borrowings from a bank.

"The Board of Directors of the Company, at its meeting held today i.e. Wednesday, February 14, 2024  inter-alia considered and approved the commissioning of CO2 Plant," the company said in an exchange filing. 

The company also said that the rationale behind the new plant is to convert waste molasses fermentation into liquefied carbon dioxide and dry ice. This process has both environmental and economic benefits.