Balrampur Chini Mills Approves ₹160 Cr Gypsum Plant, ₹450 Cr Preferential Issue
Balrampur Chini Mills approved a ₹160 crore Lactogypsum Processing Plant at Kumbhi, targeting production by December 2027. The company also approved a ₹450 crore preferential issue with 43% promoter participation and up to ₹200 crore via NCDs. The PLA project capex is revised to ₹3,080 crore.
The announcement involves substantial capital expenditure, significant fundraising, and strategic expansion into by-product utilization, which are material events for the company.
The company is making significant investments in value addition and expansion through new plants and capital raising, indicating positive growth prospects.
Balrampur Chini Mills Limited (BCML) has announced the establishment of a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh, with an estimated investment of up to ₹160 crore. This facility will manufacture gypsum boards from lactogypsum, a by-product of the company's upcoming Polylactic Acid (PLA) project, with an expected production capacity of approximately 76 lakh gypsum boards per annum. Commercial production is slated to commence by December 2027.
In parallel, the Board has approved a preferential issue of equity shares aggregating to approximately ₹450 crore, subject to shareholder approval, aimed at strengthening the balance sheet and supporting expansion initiatives. Promoters are expected to participate with approximately 43% in this fundraise. Additionally, the company has authorized the issuance of Non-Convertible Debentures (NCDs) up to ₹200 crore in one or more tranches.
The capital expenditure for the Polylactic Acid (PLA) project has been revised to approximately ₹3,080 crore. Ms. Avantika Saraogi, Executive Director at BCML, highlighted that these decisions reflect a continued focus on the company's growth roadmap and value creation from by-products, reinforcing commitment to sustainable and integrated operations. Mr. Vivek Saraogi, Chairman & Managing Director, emphasized a calibrated approach to growth and prudent capital allocation.
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Balrampur Chini Mills Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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