Mumbai, May 15 2026: Davangere Sugar Company Ltd has attracted significant international investor attention after Mauritius based institutional fund Craft Emerging Market Fund PCC acquired 5 crore shares in the company in bulk deal on 14 May 2026, marking a major strategic investment in India’s growing ethanol and clean energy sector. It acquired 2.5 crore shares of the company in the Citadel Capital Fund and 2.5 crore shares in Elite Capital Fund, acquiring total of 5 crore shares. Total value of the deal at Rs. 3.65 per share with total 5 crore shares comes to Rs. 18.25 crore.
On 14 May 2026 share price of the company gained 6.42% to Rs. 3.81 per share and touched high of Rs. 4.03 per share.
The development comes at a time when India’s ethanol industry is witnessing strong momentum, driven by government led blending targets, increasing fuel diversification initiatives and rising focus on renewable energy solutions. Market experts believe that integrated sugar and ethanol companies are expected to benefit substantially from the sector’s long term growth potential.
Davangere Sugar has steadily expanded its presence in the ethanol segment and currently operates with an ethanol production capacity of 150 KLPD. Over the past few years, the company has focused on strengthening operational efficiencies, improving business performance and aligning its growth strategy with the increasing domestic demand for ethanol and biofuel based solutions.
The investment by Craft Emerging Market Fund as an important institutional endorsement of the company’s future growth prospects. The transaction also highlights growing overseas investor confidence in Indian manufacturing and renewable energy linked businesses and support company’s vision of becoming India’s next ethanol giant.
Commenting on the investment, the management of Davangere Sugar Company Limited said, “The participation by Craft Emerging Market Fund reflects confidence in the company’s long term growth vision and its positioning within India’s evolving ethanol sector. We remain focused on strengthening operational performance, enhancing efficiencies and building sustainable value for stakeholders. As the ethanol industry continues to expand in India, we believe the company is well positioned to capitalize on future opportunities.”
India’s ethanol sector has emerged as one of the key focus areas within the country’s energy transition strategy. With supportive policy measures and increasing blending targets, companies operating in the ethanol value chain are witnessing rising investor interest from both domestic and international institutions.
Further strengthening its long term ethanol growth roadmap, the Board of Directors of Davangere Sugar Company Limited had earlier approved the proposed expansion of the company’s distillery production capacity at its board meeting held on March 30, 2026. The proposed capacity expansion reflects the company’s continued focus on scaling its ethanol operations in line with rising industry demand and India’s evolving biofuel and ethanol blending initiatives.
The announcement also comes ahead of Davangere Sugar’s Q4 FY26 financial results, which are scheduled to be announced on Friday, May 16, 2026. With the sector continuing to gain momentum and institutional participation increasing, Davangere Sugar is gradually positioning itself among the emerging companies participating in India’s next phase of ethanol led industrial growth.
About Davangere Sugar Company Limited
Davangere Sugar Company Limited (DSCL), established in 1970 is a Karnataka based integrated sugar and ethanol company engaged in sugar manufacturing, ethanol production and power co-generation. The company operates its manufacturing facilities at Kukkuwada in Karnataka and currently has a sugarcane crushing capacity of 4,750 TCD, a 65 KLPD ethanol plant and a 24.45 MW co-generation power facility. Over the years, DSCL has diversified its operations in line with India’s ethanol blending and renewable energy initiatives while continuing to focus on operational efficiency, sustainable growth and integrated manufacturing capabilities.
