How many new shares would be issued on full FCCB conversion?

264.55 crore equity shares, based on a conversion price of ₹3.60 per share and the current USD/INR rate of 95.2408.

What is the effective cost of the FCCB to the company?

The bonds carry a 2% annual coupon, but the 15% discount on the principal means the company effectively nets USD 85M instead of USD 100M.

When does the FCCB issuance open and where will it be listed?

The issue opens on 6 July 2026, subject to obtaining an ISIN, and the bonds will be listed on the AFRINEX exchange in Mauritius.

What is the maturity of these FCCBs?

The bonds have a five-year tenor, maturing on 9 July 2031.

Sugar · Micro cap

Davangere Sugar's FCCB could flood 264 cr shares at ₹3.60

The USD 100M bond issue, netting USD 85M at a 15% discount, would massively dilute a ₹513 cr micro-cap.

— 1 earlier story on Davangere Sugar Company Ltd. →

DAVANGERE By Tipsheet Editorial 3 Jul 2026 · 9:23 PM IST Verify on BSE · NSE

Mkt cap₹513 cr

P/E60.34×

ROE3.10%

Debt / eq.0.77

264.55 cr shares Potential new shares on full FCCB conversion

What's new

Board approved FCCB conversion price of ₹3.60 per share, a 15% discount on principal.
Issue of 1,000 bonds at $100,000 each, netting USD 85M.
Bonds carry a 2% annual coupon, mature in 2031, listed on AFRINEX Mauritius.

Why this matters

At ₹3.60 per share, full conversion would create 264.55 crore new equity shares. For a micro-cap with ₹513 crore market cap, that is extreme dilution that would reduce existing holdings to a fraction.

What we're watching

Whether the ISIN is obtained by the 6 July 2026 opening date.
Share price reaction to the dilution announcement.
Any early conversion or buyback provisions in the bond terms.

The full read

Davangere Sugar fixed its FCCB conversion price at ₹3.60. That is a shocker. Full conversion would create 264.55 crore new shares, more than the current float, in a company worth just ₹513 crore. The USD 100M bond issue, carrying a 2% coupon and a five-year tenor, nets only USD 85M thanks to a 15% discount on principal. The board approved terms on 3 July, and the issue opens 6 July on the AFRINEX exchange in Mauritius, pending an ISIN. Massive dilution. Existing shareholders would see their ownership slashed to a sliver if bondholders convert.

Questions answered

How many new shares would be issued on full FCCB conversion?: 264.55 crore equity shares, based on a conversion price of ₹3.60 per share and the current USD/INR rate of 95.2408.
What is the effective cost of the FCCB to the company?: The bonds carry a 2% annual coupon, but the 15% discount on the principal means the company effectively nets USD 85M instead of USD 100M.
When does the FCCB issuance open and where will it be listed?: The issue opens on 6 July 2026, subject to obtaining an ISIN, and the bonds will be listed on the AFRINEX exchange in Mauritius.
What is the maturity of these FCCBs?: The bonds have a five-year tenor, maturing on 9 July 2031.

Mentioned: Davangere Sugar · AFRINEX Exchange · USD 100M FCCB

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on DAVANGERE →

3 Jul 2026 · 9:23 PM IST Davangere Sugar's FCCB could flood 264 cr shares at ₹3.60
today Davangere Sugar's ₹952 cr FCCB plan risks massive dilution