Balrampur Chini Mills Ltd plans to invest Rs 160 crore in a lactogypsum plant and raise Rs 450 crore via preferential shares, adding Rs 230 crore to its PLA plant budget. This strategic move aims to manage escalating costs while expanding its business through equity and debt financing.

Balrampur Chini Mills' Bold Investment Moves: New Plants and Shares

In a strategic growth move, Balrampur Chini Mills Ltd announced its plan to invest Rs 160 crore in a lactogypsum processing plant in Uttar Pradesh. Additionally, the prominent sugar firm plans to raise up to Rs 450 crore through the issuance of preferential shares to its promoters and investors.

The decision also includes an upward revision of the capital expenditure for its poly lactic acid (PLA) manufacturing plant, increasing the budget from Rs 2,850 crore to Rs 3,080 crore. The need for an increased budget stems from rising construction costs and global supply chain issues.

Funding for these projects will be sourced through preferential equity, debt, and internal accruals. This means 93,16,771 equity shares will be issued at Rs 483 each, while additional funds could be raised through non-convertible debentures. Balrampur Chini Mills continues to be a key player in India's sugar industry, increasingly diversifying into bio-plastic domains.

(With inputs from agencies.)