Repayment of loans post successful closure of Rights Issue
DECNGOLD · price
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Deccan Gold Mines has become completely debt-free after using proceeds from its ₹314.70 crore Rights Issue (closed December 26, 2025) to fully repay all outstanding loans plus accrued interest. The company repaid ₹75 crore to Ardent Steels, ₹120 crore to Godawari Power & Ispat, and ₹8 crore to Hira Ferro Alloys, with interest settled up to January 2, 2026. The management stated this fulfills the commitment made in the Rights Issue offer document. The company is now working with the Hira Group on procedural steps including filing satisfaction of charges and releasing pledged shares of Geomysore Services India Pvt Ltd. The Managing Director called this a defining moment that enables greater investment in exploration and production.
Becoming debt-free strengthens the balance sheet, frees up cash flow for project execution, and removes interest costs — generally positive for shareholders, though the use of Rights Issue proceeds for debt repayment means the fundraising won't directly fund new growth investments. Watch for follow-up announcements on exploration and production plans now that the company is unencumbered.