DSDavangere Sugar Company543267Warrant news

In-principle approval received for ~10.64 crore warrants on preferential basis

Davangere Sugar has received in-principle approvals from BSE and NSE, both dated 22nd October, 2026, for issuing ~10.64 crore convertible equity warrants to promoters on a preferential basis at Rs. 3.77 per warrant.

By ScoutQuest · Fri 23 Oct 2026, 4:42 PM IST · 2 min read

Warrants Approved

~10.64 crore convertible equity warrants to promoters on a preferential basis

Issue Price per Warrant

Rs. 3.77 per warrant

Conversion Terms

Each warrant converts into one equity share of face value Re. 1/-

What was announced

Davangere Sugar Company Limited has informed the exchanges that it has received in-principle approvals from BSE Limited and National Stock Exchange of India Limited for the issue of ~10.64 crore convertible equity warrants to the promoters of the Company on a preferential basis.

Key terms as stated

• Each warrant is convertible into one equity share of face value Re. 1/- each.
• Issue price is Rs. 3.77 per warrant.
• The issue is to the promoters, on a preferential basis, as approved by the shareholders of the Company.
• The BSE approval letter reference is LOD/PREF/SS/FIP/991/2026-27 and the NSE reference is NSE/LIST/57029, both dated 22nd October, 2026.

What an in-principle approval means

This is the exchanges clearing the proposed preferential issue to go ahead. Both exchanges have stated that the in-principle approval should not be construed as approval for listing of the securities, and that the company must separately comply with the requirements for listing.

Conditions and points noted by the exchanges

• The company must ensure the issue and allotment are strictly in line with the Companies Act, 2013, the SEBI Act, the Depositories Act, the SEBI (ICDR) Regulations, 2018, the SEBI (LODR) Regulations, 2015 and the listing agreement.
• The company is advised to obtain an undertaking from the allottees that they will not do intra-day trading in the scrip, or any sale in the scrip, till the allotment date of the security.
• The responsibility to verify this and ensure compliance rests solely on the issuing company.
• Non-compliance, if observed by the exchanges after the undertaking and verification, may impact the listing of such shares.
• A listing application must be made within twenty days from the date of allotment, along with the documents specified by the exchanges.
• NSE has also listed conditions such as update the listing application at the earliest, receipt of statutory and other approvals, compliance with applicable regulations as on the date of listing, and submission of documents and payment of applicable fees.

What this changes for shareholders

• The company has moved one step ahead in the process of issuing these warrants to its promoters.
• The warrants are convertible into an equal number of equity shares, so the share capital can increase once conversion happens.
• The shares arising on conversion are to be listed separately, for which a listing application has to be shared after allotment.

What to watch

• The actual allotment of the warrants and the inflow of the issue proceeds to the company.
• The exercise of conversion by the warrant holders and the issue of equity shares.
• The company's listing application for the new shares after allotment.

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