Davangere Sugar Company Limited has made a regulatory disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the approval of Foreign Currency Convertible Bonds (FCCBs).
Key Quantitative Figures
- Total FCCB Issue Size: USD 100,000,000 (United States Dollars One Hundred Million)
- Bond Structure: 1,000 bonds of USD 100,000 each
- Issue Price: At 15% discount to principal amount (aggregate issue price of USD 85,000,000)
- Coupon Rate: 2% per annum
- Maturity Date: July 09, 2031
- Tenure: 5 years from date of allotment
- Conversion Price: INR 3.60 per equity share (based on regulatory floor price)
- Potential Equity Shares on Full Conversion: Approximately 264,55,77,778 shares (based on RBI reference exchange rate of 95.2408 as of July 03, 2026)
- INR Equivalent of Issue: Approximately INR 952,40,80,000 (based on exchange rate of 95.2408)
Parties Involved
- Issuer: Davangere Sugar Company Limited
- Stock Exchanges for Listing: Afrinex Stock Exchange (Afrinex Limited), Republic of Mauritius
- Regulatory References: SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023
- Approving Authorities: BSE Limited and National Stock Exchange of India Limited (granted in-principle approval on June 10, 2026)
Regulatory Background
The FCCB issuance follows:
- Special resolution passed at Extra-Ordinary General Meeting held on April 24, 2026
- In-principle approval from BSE and NSE received on June 10, 2026
- Compliance with Regulation 28(1) of SEBI Listing Regulations
- Adherence to Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, as amended ("FCCBs Guidelines")
Conversion Mechanism
The number of equity shares to be issued upon conversion of FCCBs will be calculated by dividing the nominal amount of FCCB converted at INR based on the foreign exchange rate as on date of conversion, divided by the conversion price of INR 3.60 per equity share.