Davangere Sugar gets exchange nod for USD 100 million FCCB issue, sets up UK subsidiary
Davangere Sugar secured in-principle BSE and NSE approval to raise up to USD 100 million through FCCBs for acquisitions, ethanol and sugar expansion, technology, and infrastructure projects. The company also incorporated wholly owned UK subsidiary Aurevant Global Limited to expand internationally in sugar and ethanol.
Davangere Sugar Company Limited has received in-principle approval from BSE Limited and the National Stock Exchange of India (NSE) for the proposed issue of Foreign Currency Convertible Bonds (FCCBs) worth up to USD 100 million, the company disclosed in a regulatory filing on June 24, 2026.
The approvals were granted by both exchanges under Regulation 28(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company said the FCCB proceeds are intended to fund the acquisition of an integrated sugar mill or ethanol distillery, or a strategic stake or joint venture in an existing miller. The funds may also be deployed towards procurement of capital equipment and technology, strategic partnerships, and related refinery and port storage capital expenditure, as well as toll processing and land lease or project development activities, according to the filing.
Separately, the Karnataka-based sugar company disclosed that it has incorporated 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 GBP. Davangere Sugar holds 100 per cent of the subsidiary, which is intended to operate in the sugarcane products and sugar by-products sector, including the production of ethanol and sugar products, the filing stated.
Managing Director S.S. Ganesh signed the disclosure, which was submitted to the exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
The in-principle approvals from both BSE and NSE are conditional and subject to the company meeting several compliance requirements, including receipt of statutory clearances from regulators such as SEBI, the Reserve Bank of India (RBI), and the Ministry of Corporate Affairs (MCA), among others. Both exchanges have reserved the right to withdraw their approvals if the information submitted is found to be incomplete, incorrect, or misleading.
The filing noted that the FCCB disclosure follows an earlier board meeting communication in March 2026, in which the company had flagged strategic corporate developments. The incorporation of Aurevant Global Limited marks Davangere Sugar’s first direct international subsidiary as the company expands its footprint beyond India.
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Source : ChiniMandi
