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Balrampur Chini Mills to raise up to ₹450 crore via preferential issue and ₹200 crore via NCDs, ups PLA capex to ₹3,080 crore, plans new lactogypsum plant in Uttar Pradesh.
By Gareema Bangad
Balrampur Chini Mills Ltd. on Thursday, April 23, approved a preferential issue to raise up to ₹450 crore, along with plans to raise debt and revise capital expenditure for its bioplastics project.
The company will issue up to 93.16 lakh equity shares at ₹483 apiece to promoters, promoter group entities and institutional investors, including funds from Tata Mutual Fund, ICICI Prudential and others.
The proposed allotment, subject to shareholder approval, will be taken up at an extraordinary general meeting scheduled for May 20.
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Separately, the board also approved raising up to ₹200 crore through listed, secured non-convertible debentures (NCDs) via private placement in one or more tranches.
In addition, the company revised the capital outlay for its 80,000 tonnes per annum Poly Lactic Acid (PLA) project to ₹3,080 crore from ₹2,850 crore earlier, citing cost escalations of around ₹230 crore due to higher construction material prices, supply chain disruptions and design changes. The enhanced capex will be funded through a mix of equity, debt and internal accruals.
Balrampur Chini also approved setting up a lactogypsum processing plant at Kumbhi, Uttar Pradesh, with an investment of up to ₹160 crore. The facility, with a capacity of around 76 lakh gypsum boards annually, will utilise by-products from the PLA project to improve value realisation.
The developments are part of the company’s broader strategy to diversify into value-added and sustainable product segments while strengthening its capital structure.
Following the announcement, shares of the company ended 1.58% lower at ₹533 on Thursday. The stock has gained 12.57% over the last month and 21.6% year-to-date.
