Penny inventory below ₹5: Davangere Sugar Firm (DSCL) share worth will stay in focus in Monday’s buying and selling session after the corporate introduced capex growth plans on August 29.
On Friday, Davangere Sugar Firm shares had been up 6.73 per cent to shut at ₹3.49 apiece. The penny inventory has remained risky in near-term because it gained over 9.40 per cent in a month, nonetheless, has descended 26 per cent in six months.
Davangere Sugar Firm Capex growth plans
In a launch dated August 29, the corporate mentioned that it gearing up for a transformative part of progress, leveraging a beneficial authorities coverage, rising ethanol demand, and deep-rooted farmer partnerships as India accelerates its transition towards cleaner fuels and rural industrialisation.
Growth in ethanol and CO2 restoration
DSCL’s present progress technique is anchored within the fast growth of its ethanol manufacturing capability, supported by India’s Ethanol Mixing Program (EBP) and the federal government’s sturdy coverage thrust in the direction of cleaner fuels. With the EBP gaining momentum, DSCL is ready to extend its present 65 KLPD (kilo litres per day) ethanol capability to 85 KLPD inside FY26, with an additional growth plan to succeed in 110 KLPD, coupled with a 35 TPD CO₂ restoration plant within the pipeline.
These investments align DSCL with the federal government’s ethanol coverage and roadmap, present further income streams to the corporate.
Making certain constant feedstock provide and year-round manufacturing, the corporate plans to diversify procurement by tapping into damaged rice and maize, permitting it to not solely meet its personal uncooked materials necessities. But in addition deal with grain buying and selling vertical—a strategic transfer geared toward unlocking recent income streams.
Empowering Farmers, Boosting Cane Acreage
In a bid to strengthen its provide chain and deepen rural engagement, DSCL can also be launching a serious push in sugarcane cultivation. The corporate goals to develop cultivation by 15,000 acres this 12 months alone.
Key to this technique is a package deal of farmer-centric initiatives:
⦁ Mechanised harvesting methods to cut back labour prices and enhance farm productiveness.
⦁ Organised cane transport options to streamline logistics and guarantee well timed provide.
⦁ Subsidies and performance-linked incentives to reward farmers and increase incomes.
These efforts are projected to assist DSCL surpass 5 lakh metric tonnes of sugarcane crushing constantly within the coming years, making a multiplier impact throughout its sugar, ethanol, and energy companies, the corporate mentioned within the launch.
“Davangere Sugar is at a turning level in its progress journey. With expansions in ethanol, aggressive grain procurement, elevated cane cultivation, and farmer-friendly initiatives, we’re creating a sturdy progress mannequin that strengthens revenues, profitability, and long-term shareholder worth. The corporate’s zero-waste, absolutely built-in operations guarantee each enter—from sugarcane to grain—is utilised optimally, contributing to each environmental sustainability and rural prosperity,” mentioned Ganesh Shivashankarappa Shamanur, Chairman & Managing Director of Davangere Sugar Firm Restricted expressed.
Davangere Sugar Firm rights subject
Davangere Sugar Firm introduced its Rights Concern, which opened on August 14, and closed on August 29. The file date for the Rights Concern was set for August 6.
The corporate issued 48,92,39,202 fairness shares at a worth of ₹3.05 per share, aggregating to ₹149.22 crore. The entitlement ratio was set at 13:25, that means shareholders shall be eligible for 13 rights shares for each 25 fully-paid fairness shares held on the file date.
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