Balrampur Chini Mills approves ₹450 Crore preferential issue, ₹200 Crore NCDs, and PLA project expansion
Balrampur Chini Mills will raise ₹450 crore via preferential issue and ₹200 crore through NCDs. The PLA project capex is revised to ₹3,080 crore. A ₹160 crore gypsum processing plant will be established. An EGM is scheduled for May 20, 2026, to approve these proposals.
The preferential issue and NCD issuance represent substantial fundraising activities. The revision in PLA project capex and the establishment of a new gypsum plant indicate major strategic investments and expansions, which are expected to have a significant impact on the company's financial performance and operational capacity.
The company is undertaking significant fundraising and capital expenditure initiatives, including a preferential issue, NCD issuance, PLA project expansion, and a new gypsum processing plant, which are generally positive for long-term growth and value creation.
Balrampur Chini Mills Limited's Board of Directors, in a meeting held on April 23, 2026, approved several key 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, raising approximately ₹450 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.
The company also 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. This revision is attributed to increased costs of construction materials, global supply chain disruptions, and engineering design modifications. The enhanced capex will be funded through a mix of equity from the preferential issue, 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 aims to process by-products from the PLA manufacturing operations for value addition. A portion of the proceeds from the preferential issue, up to ₹160 crore, will be utilized for this project. Commercial production for the gypsum plant is expected to commence around December 2027.
The Board meeting commenced at 11:00 A.M. and concluded at 14:45 P.M.
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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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