Stock market today: After a solid bounceback in the Indian stock market today, shares of Davangere Sugar Company witnessed a sharp rise during Wednesday's deals. Davangere Sugar Company share price today opened flat at ₹9 apiece and touched an intraday high of ₹9.90 per share mark on NSE, recording an intraday rise of 10 percent against Tuesday's close price of ₹9 per share. The leading sugar marker of India, which is in the business of sustainable power and ethanol solutions business, recently announced its capacity expansion, which probably attracted bulls' attention during Wednesday's dealings.
The sugar manufacturer company recently declared a significant capacity expansion, stating, "Davangere Sugar Company is proud to announce the expansion of its distillery and operations by adding another 45 KLPD grain-based units at a project cost of ₹54 crores, we are significantly increasing our production capacity. The financial tie-up with banks is completed and about ₹2 crores is invested in civil works. Negotiations completed with machinery suppliers. This milestone for the company and the local agricultural community marks our commitment to growth and financial stability. The expansion will allow the company to now operate independently for 330 days of the year, ensuring a steady and robust production cycle."
Regarding the capacity expansion move, management expressed their enthusiasm, stating, "We are excited to deepen and further strengthen our collaboration with local farmers. Their quality crops are the foundation of our ethanol production, and this expansion allows us to create more jobs, boost local income, and maintain our high standards year-round. The expansion enhances the distillery's production capabilities and offers farmers a reliable market for their produce. This mutually beneficial relationship promises to enhance the region's agricultural landscape, providing stability and growth opportunities for all involved." This positive development underscores our commitment to the local community and our vision for a sustainable future.
The company management proudly announced the establishment of a state-of-the-art 35-ton Carbon Dioxide (CO2) processing plant. This facility, designed with the latest technology and stringent environmental standards, is meticulously designed to drastically reduce environmental emissions and create additional revenue streams for the company. It demonstrates our unwavering commitment to sustainability and environmental responsibility, a key aspect of our business strategy."
Davangere Sugar Company shares recently traded ex-split in a 1:5 ratio. This means that for every share held, shareholders will receive an additional four shares. According to information on the BSE website, the sugar stock traded ex-split on 31 May 2024 to finalize the list of beneficiary shareholders for the company's 1:54 stock split. This strategic move is expected to increase the liquidity of our shares and make them more accessible to a wider range of investors, keeping our stakeholders well-informed about our financial decisions.
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