Davangere Sugar Company Limited has received in-principle approvals from both BSE Limited and National Stock Exchange of India Limited for the preferential issue of convertible equity warrants to promoters.

Key Quantitative Figures

The approval covers the issue of 10,64,11,079 (10.64 crore) convertible equity warrants, each convertible into one equity share of face value ₹1 each. The issue price is set at ₹3.77 per warrant.

Dates of Action

  • BSE approval letter reference: LOD/PREF/SS/FIP/991/2026-27 dated 22nd October, 2026
  • NSE approval letter reference: NSE/LIST/57029 dated 22nd October, 2026
  • Company intimation date: 23rd October, 2026

Conditions and Requirements

The exchanges have stipulated several conditions for the approval:

1. The company must make listing application within twenty days from the date of allotment as per SEBI circular no. SEBI/HO/CFD/PoD-2/P/CIR/2023/00094 dated June 21, 2023

2. Compliance with Companies Act, 2013, Securities Contracts Regulation Act, 1956, SEBI Act, 1992, and Depositories Act, 1996

3. Obtaining all necessary statutory approvals from SEBI, RBI, MCA, etc.

4. Payment of applicable fees for listing application

5. Strengthening internal controls to monitor trades by proposed allottees

Specific Compliance Requirements

The company must obtain undertakings from allottees confirming they will not:

  • Engage in intra-day trading in the company's scrip
  • Execute any sale in the company's scrip until the allotment date of the security

The responsibility for verification and compliance with Regulation 167(6) of SEBI ICDR regulations, 2018 rests solely with the issuer company.

Consequences of Non-compliance

Any non-compliance observed by exchanges post-undertaking and verification may impact the listing of such shares. The exchanges reserve the right to withdraw the in-principle approval if submitted information is found incomplete, incorrect, misleading, false, or in contravention of any rules and regulations.

Post-allotment Requirements

On allotment of securities, the company must make a listing application without delay with applicable fees in terms of Regulation 14 of the LODR Regulations and comply with post-issue formalities.