Balrampur Chini Mills Limited has announced a major ₹450 crore fundraise through a preferential issue of equity shares to promoters and institutional investors. The company is simultaneously ramping up capital expenditure for its Poly Lactic Acid (PLA) project, now revised to ₹3,080 crore, and establishing a new ₹160 crore gypsum processing plant in Uttar Pradesh. These strategic moves aim to diversify revenue streams and enhance value through by-product monetization.
Strategic Fundraising via Preferential Issue
The Board of Directors has approved the issuance of up to 93,16,771 equity shares at a price of ₹483 per share. This initiative, totaling ₹450 crore, includes participation from key promoters and high-profile institutional entities such as the TATA Small Cap Fund and various alternative investment funds. An Extraordinary General Meeting is scheduled for May 20, 2026, to secure final shareholder approval for this capital infusion.
Scaling the PLA Project
The company has revised the estimated capital outlay for its 80,000 tonnes per annum Poly Lactic Acid (PLA) project from ₹2,850 crore to ₹3,080 crore. This increase of ₹230 crore is attributed to rising costs in construction materials and supply chain adjustments. The project remains a centerpiece of the company’s long-term growth strategy, with the increased expenditure set to be covered by the new equity issue, debt financing, and internal cash accruals.
Venturing into Gypsum Processing
In a move to optimize operational efficiency, the company is establishing a Lactogypsum Processing Plant at its Kumbhi facility in Uttar Pradesh. With an estimated cost of ₹160 crore, this plant will have an annual capacity of 76 lakh gypsum boards. The project is designed to transform manufacturing by-products into a value-added, revenue-generating stream, reflecting the company’s commitment to sustainable and circular industrial practices.
Diversifying Debt Portfolio
Beyond equity-based expansion, the board has approved the issuance of Listed, Secured, Non-Convertible Debentures (NCDs) on a private placement basis. The company plans to raise up to ₹200 crore in one or more tranches to support its broader financial objectives and strengthen its capital structure.
Source: BSE
