Balrampur Chini Mills approves ₹450 Crore Preferential Issue, ₹200 Cr NCDs, and PLA project expansion
Balrampur Chini Mills approved a ₹450 crore preferential issue of equity shares at ₹483 per share and a ₹200 crore NCD issuance. The PLA project capex increased by ₹230 crore to ₹3,080 crore, and a ₹160 crore gypsum processing plant will be established. An EGM is scheduled for May 20, 2026.
The preferential issue and NCD issuance are substantial amounts that will impact the company's capital structure and funding for its growth initiatives. The revision in PLA project capex and the establishment of a new plant also represent significant capital deployment and strategic moves.
The company is undertaking significant fundraising activities (preferential issue and NCDs) and expanding its project capacities (PLA and Gypsum processing plant), indicating growth and strategic investment, which is positive for the company's future prospects.
Balrampur Chini Mills Limited's Board of Directors, in a meeting held on April 23, 2026, approved a Preferential Issue of up to 93,16,771 equity shares at ₹483 per share, aggregating to ₹450.00 crore. The issue is proposed to be made to promoters, promoter group, and non-promoter investors.
The Board also approved the issuance of Listed, Secured, Non-Convertible Debentures (NCDs) aggregating up to ₹200 crore on a private placement basis. This issuance is subject to necessary regulatory and statutory approvals.
Furthermore, the Board revised the capital expenditure for the 80,000 tonnes per annum PLA Project from ₹2,850 crore to ₹3,080 crore, an increase of ₹230 crore, attributed to cost escalations in construction materials and global supply chain disruptions. The revised capex will be funded through a mix of equity, debt, and internal accruals.
In addition, the establishment of a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh, was approved 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 process by-products from the PLA manufacturing operations. Funding for this project will be partly from the net proceeds of the Preferential Issue, up to ₹160 crore.
An Extra-Ordinary General Meeting (EGM) of the shareholders has been convened for Wednesday, May 20, 2026, to seek approval for these proposals. The Board 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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