Sugar stock Davangere Sugar Company jumps 10% after announcement of capacity expansion move

livemint.com:

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.