Davangere Sugar Company has successfully allotted 26,59,05,000 fully paid up equity shares of face value Re 1 each at a conversion price of ₹3.60 per equity share upon conversion of Unsecured Foreign Currency Convertible Bonds (FCCBs). According to reports from Business Standard, this allotment represents a significant capital infusion for the sugar company through the conversion of foreign currency instruments. The conversion process involved $10 million worth of FCCBs, demonstrating the company's ability to convert foreign currency obligations into domestic equity.
Following this allotment, the paid up equity share capital has increased to ₹169,58,95,798 divided into 169,58,95,798 fully paid-up equity shares of Re 1 each. As reported by Business Standard, the company's equity structure has been substantially enhanced through this conversion process, with the paid up equity share capital more than doubling from the previous amount. This conversion extends the company's recurring capital-support and dilution pattern, providing additional equity base for future operations.
Despite the significant allotment, 900 FCCBs of principal amount of USD 90,00,000 each remain outstanding post the conversion process. According to the report, these foreign currency convertible bonds are listed at Afrinex Exchange (AFRINEX Securities List, Republic of Mauritius) and represent the remaining portion of the company's foreign currency obligations. The conversion of $10 million worth of FCCBs has reduced the outstanding debt burden but leaves a substantial portion still pending conversion.
