Davangere Sugar Company Limited's board of directors approved the issuance of unsecured Foreign Currency Convertible Bonds (FCCBs) worth USD 100 million at its meeting held on July 3, 2026, the company said in a regulatory filing.
According to the filing, the board approved FCCBs with an aggregate principal amount of USD 100,000,000, comprising 1,000 bonds of USD 100,000 each. The bonds carry a coupon of 2 per cent per annum and will be issued at a 15 per cent discount to their principal amount, taking the aggregate issue price to USD 85,000,000. The bonds are set to mature on July 9, 2031.
The company said the board also approved the terms and conditions of the FCCBs as laid out in the final Offering Circular, along with the opening of the FCCB issue on July 6, 2026, subject to obtaining the International Securities Identification Number (ISIN) from the Afrinex Stock Exchange in the Republic of Mauritius. The board fixed the “Relevant Date” for the issue as July 3, 2026, in line with the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, and the regulatory floor price was determined accordingly under these guidelines.
The proposed issue follows shareholder approval granted through a special resolution at the company’s Extraordinary General Meeting held on April 24, 2026, and in-principle approval from BSE Limited and the National Stock Exchange of India, both granted on June 10, 2026.
As per the disclosure, the equity shares underlying the FCCBs on conversion will be calculated by dividing the nominal amount of each FCCB, converted into rupees at the prevailing exchange rate, by the conversion price of Rs 3.60 per equity share, which is based on the regulatory floor price. Based on the exchange rate of 95.2408 as on July 3, 2026, sourced from the Reserve Bank of India, the number of equity shares underlying all the FCCBs would be approximately 264,55,77,778. At the same exchange rate, the USD 100 million issue would translate to approximately Rs 952,40,80,000.
The company clarified in the filing that there have been no defaults in coupon payments on FCCBs and no changes to the terms of the bonds. The board meeting commenced at 5.30 pm and concluded at 7.30 pm on July 3, 2026.