Balrampur Chini Mills Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026, concerning the utilization of proceeds from its preferential issue. The report, prepared by India Ratings & Research Private Limited, confirms that there has been no deviation from the stated objects of the issue. The findings were reviewed and considered by the company’s Audit Committee and Board of Directors.
Monitoring Agency Report Confirms Fund Utilization
Balrampur Chini Mills Limited has issued a Monitoring Agency Report for the quarter ending June 30, 2026. This report pertains to the utilization of funds raised through a preferential issue undertaken by the company. The report was prepared by India Ratings & Research Private Limited, the designated Monitoring Agency.
Key Findings: No Deviation
A primary finding of the report is that there has been no deviation from the objects for which the funds were raised. This confirmation is based on management undertakings and a certificate from the Statutory Auditor, LODHA & CO LLP. The report indicates that the utilization of proceeds aligns with the disclosures made in the Offer Document.
Corporate Governance and Review
The report was duly considered by the Audit Committee and the Board of Directors of Balrampur Chini Mills Limited at their meetings held on August 11, 2026. The company has also made the report available on its official website, www.chini.com, ensuring transparency and accessibility for stakeholders.
Issue Details
The preferential issue involved the allotment of 93,16,771 Equity Shares at a price of ₹483 per share, with a face value of ₹1 each, for a total issue size of INR 450 Crores. The issue period was from May 20, 2026, to June 3, 2026.
Utilization of Proceeds
The total allocated amount for the objects of the issue was ₹450.00 Crores. The report details the utilization against specific objectives:
- Purchase of Plant & Machinery for Poly Lactic Acid (PLA) Project: Original cost ₹230.00 Crores. Amount utilized ₹60.74 Crores during the quarter, with a total utilization of ₹60.74 Crores at the end of the quarter, leaving ₹169.26 Crores unutilized.
- Establishment of Gypsum Processing Plant: Original cost ₹110.00 Crores. Amount utilized ₹110.00 Crores at the end of the quarter, leaving ₹110.00 Crores unutilized.
- General Corporate Purposes: Original cost ₹110.00 Crores. Amount utilized ₹110.00 Crores at the end of the quarter, leaving ₹110.00 Crores unutilized.
A total of ₹170.74 Crores was utilized during the quarter, with an overall utilization of ₹170.74 Crores and ₹279.26 Crores remaining unutilized at the end of the quarter.
Deployment of Unutilized Proceeds
The unutilized funds totaling ₹279.26 Crores have been deployed into various Fixed Deposits (FDs) with Axis Bank and PNB Bank, and an MF – SBI Overnight Fund. These investments are earning returns ranging from 7.20% to 7.30%, with maturity dates extending up to July 4, 2027.
Delay in Implementation
The report notes the status of ongoing projects:
- Purchase of Plant & Machinery for Poly Lactic Acid (PLA) Project: On-going, with a target completion date on or before December 31, 2026.
- Establishment of Gypsum Processing Plant: On-going, with a target completion date on or before December 31, 2027.
- General Corporate Purposes: Completed.
Source: BSE
