Davangere Sugar secures US$100M FCCB approval
The Indian sugar producer plans strategic investments in sugar and ethanol assets while establishing its first overseas subsidiary in the United Kingdom.
INDIA – Davangere Sugar Company Limited has received in-principle approval from BSE Limited and the National Stock Exchange of India (NSE) for a proposed Foreign Currency Convertible Bonds (FCCBs) issuance worth up to US$100 million, strengthening its plans to expand in the sugar and ethanol sectors.
The approvals were granted under Regulation 28(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the company, the FCCB proceeds will be used to support strategic growth initiatives, including the acquisition of an integrated sugar mill, an ethanol distillery, or a strategic stake or joint venture in an existing sugar manufacturing business.
The company said the funds may also be deployed towards the procurement of capital equipment and technology, strategic partnerships, refinery and port storage-related capital expenditure, toll processing activities, and land lease or project development initiatives.
In a separate disclosure, the Karnataka-based sugar producer announced the incorporation of a wholly owned subsidiary in London, United Kingdom, under the name Aurevant Global Limited. The entity was incorporated on June 4, 2026, with a cash consideration of £1,000.
Davangere Sugar holds 100 per cent ownership of Aurevant Global Limited, which will operate in the sugarcane products and sugar by-products sector, including the production of sugar and ethanol products.
The company stated that the subsidiary forms part of its broader international expansion strategy and marks its first direct overseas presence.
Managing Director S.S. Ganesh signed the disclosure submitted to the stock exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
The company noted that the approvals granted by BSE and NSE remain conditional and are subject to compliance with all applicable regulatory requirements. Both exchanges have reserved the right to withdraw their approvals if any information provided is found to be incomplete, inaccurate or misleading.
The FCCB announcement follows an earlier board communication issued in March 2026, which highlighted strategic corporate developments under consideration by the company.
For the financial year ended March 31, 2026, Davangere Sugar reported a net profit of Rs 850.66 lakh (US$901.34K), down from Rs 1,093.71 lakh (US$11.58M) recorded in the previous financial year.
However, revenue from operations increased to Rs 23,877.26 lakh (US$25.3M) from Rs 21,498.53 lakh (US$22.78M) in FY25, reflecting continued growth in the company’s business operations as it pursues expansion opportunities in India and international markets.
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