Balrampur Chini Mills Approves ₹450 Cr Preferential Issue, ₹200 Cr NCDs, & PLA Capex Hike
Balrampur Chini Mills approved a ₹450 crore preferential issue of equity shares and a ₹200 crore NCD issuance. The PLA project capex was revised to ₹3,080 crore from ₹2,850 crore. A new Lactogypsum Processing Plant, costing up to ₹160 crore, was also approved. An EGM is scheduled for May 20, 2026.
The preferential issue and NCD issuance are substantial fundraising activities. The increase in PLA project capex and the establishment of a new processing plant represent significant strategic investments that will impact the company's future operations and financial structure.
The company has approved significant fundraising through preferential issue and NCDs, along with substantial capex for new projects and expansion, indicating positive growth and strategic initiatives.
Balrampur Chini Mills Limited's Board of Directors, in a meeting held on April 23, 2026, approved several key financial and strategic initiatives. The company will issue up to 93,16,771 equity shares at ₹483 per share on a preferential basis to promoters and non-promoters, aggregating ₹450.00 crore. This preferential issue is subject to shareholder approval at an Extra-Ordinary General Meeting (EGM) scheduled for May 20, 2026.
Additionally, the Board approved the issuance of listed, secured, non-convertible debentures (NCDs) aggregating up to ₹200 crore on a private placement basis. The company also revised the capital expenditure for its Poly Lactic Acid (PLA) project from ₹2,850 crore to ₹3,080 crore, an increase of ₹230 crore, citing cost escalations due to material prices and supply chain disruptions. This revised capex will be funded through a mix of equity, debt, and internal accruals.
Furthermore, the Board approved the establishment of a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh, with an estimated project cost of up to ₹160 crore. This plant will have a capacity of approximately 76 lakh gypsum boards per annum and will be funded partly by the preferential issue proceeds. The PLA project's revised enhanced capex will be funded through a mix of equity, debt, and internal accruals. The meeting commenced at 11:00 AM and concluded at 2:45 PM.
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Balrampur Chini Mills Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. 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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