Balrampur Chini Mills Approves ₹450 Crore Preferential Issue, ₹200 Cr NCDs, and Capex Hike
Balrampur Chini Mills approved a preferential issue of equity shares worth ₹450 crore and NCDs up to ₹200 crore. The company also revised its PLA project capex to ₹3,080 crore and approved a new ₹160 crore gypsum processing plant. An EGM is scheduled for May 20, 2026, for shareholder approval.
The preferential issue, NCD issuance, and revised capex for the PLA project represent substantial financial commitments and strategic growth initiatives, which will have a significant impact on the company's financial structure and future operations.
The company has approved significant fundraising through preferential issue and NCDs, along with strategic investments in new projects and expansion of existing ones, which is generally positive for growth.
Balrampur Chini Mills Limited's Board of Directors, in a meeting held on April 23, 2026, approved several key financial and strategic decisions. 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 up to ₹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. This issuance will be in one or more tranches.
Furthermore, the company revised the capital expenditure for its Poly Lactic Acid (PLA) Project. The estimated outlay for the 80,000 tonnes per annum PLA Project has been increased from ₹2,850 crore to ₹3,080 crore, an escalation of ₹230 crore due to increased costs of construction materials and supply chain disruptions. This enhanced capex will be funded through a mix of equity, debt, and internal accruals.
The Board also 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 process by-products from the PLA manufacturing operations and is expected to add value. A portion of the net proceeds from the preferential issue, up to ₹160 crore, will be used to fund this project. 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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See the model portfoliosA plain-language summary of a public exchange filing by Balrampur Chini Mills Limited. Read the original for the full detail.