Balrampur Chini Mills Limited has announced a major ₹450 crore preferential equity issue to fund growth initiatives, including cost escalations for its 80,000 TPA Poly Lactic Acid (PLA) project. Additionally, the company will invest ₹160 crore to establish a new Lactogypsum processing plant in Kumbhi, Uttar Pradesh. The Board has also approved raising up to ₹200 crore through Non-Convertible Debentures to support long-term business requirements and capital expenditure.
Preferential Issue to Drive Strategic Growth
In a significant move to strengthen its capital base, Balrampur Chini Mills Limited will issue up to 93,16,771 equity shares at a price of ₹483 per share. This preferential allotment, totaling ₹450 crore, includes participation from company promoters and institutional investors such as TATA Small Cap Fund, 360 One Pipe Fund, and various ICICI Prudential schemes. The funds are earmarked for financing large-scale industrial projects and general corporate purposes.
Enhanced Investment in PLA Project
The company is recalibrating the financial outlook for its 80,000 TPA Poly Lactic Acid (PLA) project. The estimated project cost has been revised from ₹2,850 crore to ₹3,080 crore. This upward adjustment of ₹230 crore is attributed to global supply chain disruptions, rising costs of construction materials, and design optimizations identified during the modelling review phase.
New Lactogypsum Processing Facility
Balrampur Chini is diversifying its operational capabilities with the establishment of a new Lactogypsum processing plant located in Kumbhi, Uttar Pradesh. With an estimated investment of ₹160 crore, the facility aims to produce approximately 76 lakh gypsum boards annually. This initiative focuses on value-added monetization of by-products generated from the company’s existing PLA manufacturing operations.
Debt Financing Strategy
Beyond equity dilution, the Board has granted approval to raise up to ₹200 crore through the issuance of Listed, Secured, Non-Convertible Debentures (NCDs) on a private placement basis. This debt-raising measure is designed to provide the company with the necessary financial flexibility to support its ongoing capital expenditure programs and long-term strategic objectives.
Upcoming Shareholder Meeting
The company has scheduled an Extra-Ordinary General Meeting (EGM) for Wednesday, May 20, 2026. Shareholders will be invited to vote on these strategic proposals, which are critical components of the company’s expansion roadmap for the coming fiscal years.
Source: BSE
