Balrampur Chini Mills Raises PLA Project Capex to ₹3,080 Crores, Approves ₹160 Cr Lactogypsum Plant

Balrampur Chini Mills has revised the capital expenditure for its polylactic acid (PLA) project from ₹2,850 crores to ₹3,080 crores, marking an increase of ₹230 crores. The company had earlier successfully raised ₹450 crores through a preferential issue of equity shares to fund its expanding capital expenditure plans and strategic initiatives.

Revised PLA Project Capital Expenditure

The board approved a significant revision in the PLA project's capital expenditure, with the cost escalation stemming from increased construction material prices, global supply chain disruptions, and engineering design modifications during the modelling review process.

Project Details: Specifications Revised Project Capex: ₹3,080 crores Original Project Capex: ₹2,850 crores Cost Escalation: ₹230 crores Project Capacity: 80,000 tonnes per annum

The 80,000 tonnes per annum PLA project will be funded through a combination of equity from the preferential issue, debt financing, and internal accruals. This strategic funding approach ensures optimal capital structure while supporting the company's expansion plans.

Lactogypsum Processing Plant Approval

Balrampur Chini Mills has approved the establishment of a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh, with an estimated investment of up to ₹160 crores. The facility will process lactogypsum generated as a by-product from PLA manufacturing operations, with an installed capacity of approximately 76 lakh gypsum boards per annum.

Plant Specifications: Details Investment: Up to ₹160 crores Location: Kumbhi, Uttar Pradesh Capacity: 76 lakh gypsum boards per annum Raw Material: Lactogypsum from PLA operations

Preferential Issue Funding Structure

The company had approved a preferential issue of equity shares worth ₹450 crores, issuing 93,16,771 fully paid-up equity shares at ₹483 per share, including a premium of ₹482 per share. The preferential issue encompasses 11 investor categories, including promoters, promoter group members, and institutional investors.

Investor Category: Key Investors Investment Amount (₹) Promoter: Vivek Saraogi, Sumedha Saraogi 1,32,62,52,312 Promoter Group: Meenakshi Mercantiles Limited 60,37,50,000 Non-Promoter: TATA Small Cap Fund, Ikigai, Others 2,56,99,98,081

Among the institutional investors, TATA Small Cap Fund leads with an investment of ₹99,99,99,819 for 20,70,393 shares, followed by 360 One Pipe Fund with ₹87,99,99,918 for 18,21,946 shares.

Strategic Financial Initiatives

The board also approved the issuance of Listed, Secured, Non-Convertible Debentures aggregating up to ₹200 crores on a private placement basis, providing additional financial flexibility for the company's growth initiatives.

Strategic Projects: Investment (₹ crores) PLA Project (Revised): 3,080 Lactogypsum Processing Plant: 160 NCD Issue Approval: 200 Commercial Production Target: December 2027

Balrampur Chini Mills operates as one of India's largest integrated sugar companies with ten sugar factories in Uttar Pradesh, aggregate sugarcane crushing capacity of 80,000 TCD, distillery operations of 1,050 KLPD, and cogeneration operations of 175.7 MW.

Balrampur Chini Mills Limited has officially granted Employee Stock Appreciation Rights (ESARs) to eligible employees under its ESAR 2023 plan. The company informed stock exchanges on April 23, 2026, in compliance with SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015 and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

ESAR Grant Details

The company has granted 12,777 ESARs under the BCML Employees Stock Appreciation Rights Plan 2023. Each ESAR has been priced at ₹541.55, with a structured vesting and exercise framework designed to align employee interests with long-term company performance.

Parameter Details Scheme ESAR 2023/Plan Type of Option Employee Stock Appreciation Rights (ESARs) Number of ESARs Granted 12,777 ESAR Price per Unit ₹541.55 Vesting Period 4 years Exercise Period 4 years from vesting date

Implementation Framework

The ESARs will vest over a period of four years, providing employees with a four-year exercise window from the date of vesting. The quantity of equity shares to be allotted against each ESAR will be determined according to the provisions outlined in the ESAR 2023 plan.

Regulatory Compliance

The grant has been executed in accordance with applicable SEBI regulations governing share-based employee benefits and sweat equity. The formal intimation was signed by Manoj Agarwal, Company Secretary & Compliance Officer, and submitted to both NSE (Symbol: BALRAMCHIN) and BSE (Scrip Code: 500038) for record purposes.

This employee stock appreciation rights program demonstrates the company's commitment to employee retention and performance-based compensation aligned with shareholder value creation.

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