Balrampur Chini Mills Limited has announced a major strategic push, including a ₹450 crore preferential equity issue to promoters and institutional investors. The company is concurrently scaling up its Poly Lactic Acid (PLA) project with an additional ₹230 crore investment and establishing a new ₹160 crore gypsum processing plant in Kumbhi, Uttar Pradesh. Furthermore, the company plans to raise ₹200 crore through non-convertible debentures to support its growth initiatives.
Preferential Equity Issuance
The company has approved a preferential issue of 93,16,771 fully paid-up equity shares at a price of ₹483 per share. This move is set to generate gross proceeds of approximately ₹450 crore. The capital will be sourced from a mix of promoters, members of the promoter group, and institutional investors, including TATA Small Cap Fund and various AIFs. The funds are earmarked to support the company’s ongoing capital expenditure programs.
Scaling the PLA Project
As part of its long-term growth strategy, the board has revised the capital outlay for the 80,000 tonnes per annum (TPA) Poly Lactic Acid (PLA) project. The total project cost has been adjusted to ₹3,080 crore, up from ₹2,850 crore. The ₹230 crore escalation is attributed to rising costs in key construction materials, global supply chain disruptions, and engineering refinements identified during the modeling review process.
New Gypsum Processing Plant
Balrampur Chini is diversifying its product portfolio by establishing a new Lactogypsum Processing Plant in Kumbhi, Uttar Pradesh. With an estimated project cost of ₹160 crore, the facility will have an installed capacity of 76 lakh gypsum boards per annum. This initiative is designed to add value to the by-products generated during PLA manufacturing, improving overall monetization and operational efficiency. The plant is expected to reach commercial production by December 2027.
Debt Financing and Shareholder Approval
In addition to equity funding, the board has authorized the issuance of Listed, Secured, Non-Convertible Debentures (NCDs) aggregating up to ₹200 crore on a private placement basis. These measures underscore the company’s commitment to strengthening its balance sheet while funding large-scale infrastructure projects. An Extra-Ordinary General Meeting (EGM) has been scheduled for May 20, 2026, to seek necessary shareholder approvals for these strategic developments.
Source: BSE
