Davangere Sugar Company Limited has informed the Exchange about Update on Rights Issue
DAVANGERE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 6.6 pts more than Nifty Microcap 250 and 6.4 pts more than its Other Agricultural Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Davangere Sugar Company is undertaking a Rights Issue of up to 48.92 crore equity shares at Rs. 3.05 per share (including a Rs. 2.05 premium), aggregating up to Rs. 149.22 crores, in a ratio of 13 Rights Shares for every 25 shares held (record date 06.08.2025). Promoter Mr. Ganesh Shivashankarappa Shamanur has applied for about 14.51 crore shares (11.04 crore entitlement plus 3.47 crore additional). His subscription, worth Rs. 4,425 lakhs, will be settled by adjusting an existing unsecured loan he had earlier given the company, so no fresh cash flows in for that portion. The statutory auditor has certified the outstanding loan balance of Rs. 8,812.01 lakhs as of July 25, 2025. The company will still receive fresh funds from other shareholders who take up their rights.
The 13:25 rights ratio is sizable and will meaningfully dilute existing shareholders who do not subscribe. Promoter participation (partly via loan conversion) signals confidence and reduces debt, but also concentrates ownership. The effective issue price relative to the market is not disclosed in the filing, so investors should check the trading price to judge the attractiveness of the offer.