Balrampur Chini Mills Approves Rs 450 Crore Preferential Issue, Revises PLA CAPEX, and Greenlights Gypsum Plant

Balrampur Chini Mills Approves Rs 450 Crore Preferential Issue, Revises PLA CAPEX, and Greenlights Gypsum Plant​

Balrampur Chini Mills Limited, the company, announced that its Board of Directors, in a meeting held on Thursday, April 23, 2026, approved several major corporate actions, including a significant preferential issue of equity shares and revisions to its strategic capital expenditure plans.

The Board approved the issue, offer, and allotment of up to 93,16,771 fully paid-up equity shares, each with a face value of Re. 1/-. These shares will be issued for cash at a price of Rs. 483/- per Equity Share, including a premium of Rs. 482/-. The total aggregated value of the allotment is up to Rs. 450,00,00,393/-.

The allocation under this Preferential Issue was directed towards identified Promoters, Promoter Group members, and Non-Promoters:

Strategic Capex Enhancements and Expansion​

The Board also reviewed two key strategic initiatives related to expansion and value addition.

Poly Lactic Acid (PLA) Project CAPEX Revision:
The Board approved revising the estimated capital outlay for the 80,000 tonnes per annum (TPA) PLA Project. The estimated cost has been revised from Rs. 2,850 crores to Rs. 3,080 crores. This revision incorporates cost escalations of Rs. 230 crores.

The Board noted that the increase in project cost is necessitated by factors including price increases of key construction materials, global supply chain disruptions, and the need to incorporate further changes in engineering and designing during the modeling review. The enhanced CAPEX, including cost escalations, will be financed through a combination of equity shares via a preferential basis, debt, and internal accruals.

Gypsum Processing Plant at Kumbhi, Uttar Pradesh:
In a separate approval, the Board sanctioned the establishment of a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh. The estimated project cost for this plant is up to Rs. 160 crores.

The proposed plant has an installed capacity of approximately 76 lakh gypsum boards per annum. This facility is intended to process Lactogypsum, which is generated as a by-product from the company’s PLA manufacturing operations, thereby ensuring value addition and improved monetization of the by-product stream. Furthermore, the Board approved utilizing a portion of the net proceeds from the Preferential Issue, up to Rs. 160 crores, to fund this project.

Additional Funding and Corporate Matters​

In addition to the preferential allotment, the Board of Directors also approved two other material corporate actions:

1. Non-Convertible Debentures (NCDs) Issuance: The company was granted enabling approval for the issuance and allotment of Listed, Secured, Non-Convertible Debentures (NCDs) aggregating up to Rs. 200 Crores. This issuance will be conducted on a private placement basis in one or more tranches.
2. Extra-Ordinary General Meeting (EGM): The Board also approved the convening of an Extra-Ordinary General Meeting (EGM) of the shareholders on Wednesday, May 20, 2026, to seek necessary shareholder approval for the matters discussed.

BALRAMCHIN Stock Price Movement​

Shares of Balrampur Chini Mills Limited are edging higher to ₹543.65 as of 3:20 PM, reflecting a gain of ₹2.10 or 0.39% in live trading. The stock has traded today in a range of ₹536.5 to ₹552.7, while over 1.46 million shares have been traded so far.