Arihant Capital Buys Over 2 Crore Shares of Davangere Sugar, a Sub-₹5 Penny Stock

Arihant Capital Markets, an Indian financial services firm, has acquired a significant stake in Davangere Sugar Co. Ltd, a diversified agro-industrial company. According to data from the NSE (National Stock Exchange) website, Arihant Capital purchased over 2 crore shares of this penny stock, which trades below ₹5, in a bulk deal executed on Friday, December 19, 2025.

The NSE data reveals that Arihant Capital bought 2,16,46,910 equity shares of Davangere Sugar on the open market. The average price per share was ₹4.27, making the total value of the transaction exceed ₹9.24 crore.

Interestingly, the data also indicates that Arihant Capital sold 7,90,498 shares of Davangere Sugar at an average price of ₹4.04 per share, amounting to ₹31.93 lakh, alongside the substantial purchase.

Following Arihant Capital's bulk acquisition, Davangere Sugar's stock price experienced a surge of over 10% during Friday's trading session. The stock reached an intraday high of ₹4.46, a notable increase from its previous closing price of ₹4.03.

Davangere Sugar's shares closed at ₹4.41 on Friday, marking a 9.43% increase compared to the previous day's close, according to NSE data.

Performance-wise, the stock has declined by over 20% in the past year and is down 21.95% year-to-date. That said, the reality is a bit more complicated. in the last month, the company's shares have provided investors with a return of 19.84%, and they are currently trading 15.75% higher than they were five sessions ago.

The stock's 52-week high reached ₹6.36 on January 22, 2025, while its 52-week low was ₹3.03 on October 10, 2025. As of Friday's market close, Davangere Sugar's market capitalization stood at ₹630.63 crore.

Davangere Sugar's management is currently focused on reducing the company's debt and improving its profitability and balance sheet. To this end, the company's promoters recently secured ₹150 crore in funding.

Furthermore, Davangere Sugar's promoters have invested approximately ₹44 crore in company advertisements and acquired nearly 10 lakh equity shares from the open market. These actions aim to bolster investor confidence in the company's stock as it pursues long-term growth.

Originally a sugar manufacturer based in Karnataka, Davangere Sugar has diversified its operations to include ethanol production and power cogeneration. The company is increasingly prioritizing ethanol production and sustainable development initiatives.