Balrampur Chini Mills has announced a major Rs. 450 crore fundraise through a preferential issue of shares to promoters and institutional investors. Simultaneously, the company has approved a revised outlay for its 80,000 TPA Poly Lactic Acid (PLA) project, now costing Rs. 3,080 crores, and the establishment of a new Rs. 160 crore Lactogypsum processing plant in Uttar Pradesh to enhance value-added production from its sugar manufacturing by-products.
Preferential Allotment for Growth
On April 23, 2026, the Board of Directors approved the issuance of up to 93,16,771 equity shares at a price of Rs. 483 per share. This strategic move is expected to raise an aggregate of approximately Rs. 450 crores. The shares are being issued to a mix of promoters, including Vivek Saraogi and Sumedha Saraogi, alongside institutional investors such as TATA Small Cap Fund and various ICICI Prudential schemes, to bolster the company’s capital base for upcoming expansion initiatives.
PLA Project Capex Revision
The company has revised the estimated capital expenditure for its 80,000 tonnes per annum (TPA) Poly Lactic Acid (PLA) project. The budget has been increased from Rs. 2,850 crores to Rs. 3,080 crores, factoring in a cost escalation of Rs. 230 crores. This revision is attributed to rising construction material costs, global supply chain disruptions, and necessary engineering updates identified during recent design modelling reviews. The project will be financed through a combination of the newly approved equity infusion, debt, and internal accruals.
New Gypsum Processing Facility
In a move to improve the monetization of its waste stream, the company will establish a new Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh. With an investment of Rs. 160 crores, this facility is designed to process the Lactogypsum generated as a by-product of the company’s PLA manufacturing operations. The plant will have an installed capacity of approximately 76 lakh gypsum boards per annum, signaling a shift toward more efficient, value-added by-product management.
Future Outlook
The company has scheduled an Extra-Ordinary General Meeting (EGM) on May 20, 2026, to seek necessary shareholder approvals for these strategic plans. Furthermore, the Board has provided enabling approval for the issuance of Listed, Secured, Non-Convertible Debentures aggregating up to Rs. 200 crores on a private placement basis to further support the company’s financial requirements.
Source: BSE
