Davangere sugar company to raise Rs 400 crore through rights issue
Davangere Sugar Company plans to raise up to Rs 400 crore by issuing equity shares to existing shareholders, as approved by its board on September 6, 2024. The company also announced the commissioning of a new CO2 plant, set up with Rs 3 crore in bank financing, to convert fermentation waste into liquid carbon dioxide and dry ice, promoting environmental and economic benefits.
Davangere Sugar Company has announced plans to raise to Rs 400 crore by issuing equity shares to its current shareholders. The company informed stock exchanges that its board of directors had proposed to meet capital needs by issuing shares, reports Zee Business.
In a statement following a September 6, 2024 meeting, the company said, “To meet the requirement of funds, the Board of Directors of the Company in its meeting held on September 06th 2024, subject to approval of the Shareholders of the Company, proposed to raise funds by issue of Equity Shares on right issue basis up to Rs. 400 Crores.”
Earlier, the company declared its new CO2 plant that it will set up with an investment of Rs 3 crore. The project will be financed through a bank loan.
“The Board of Directors has approved the commissioning of the CO2 plant in its meeting held on Wednesday, February 14, 2024,” said the company in a different statement.
The new plant would be used in converting waste that is derived from the fermentation of molasses into liquid carbon dioxide and dry ice-a process that has considerable environmental and economic benefits.
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Source Link : https://www.chinimandi.com/davangere-sugar-company-to-raise-rs-400-crore-through-rights-issue/
