Balrampur Chini Mills Limited has approved a ₹450 crore fundraise through a preferential issue of equity shares, alongside multiple strategic decisions including debt raising and capex revisions, according to its latest exchange filing.
The company’s board has cleared the issuance of up to 93.16 lakh equity shares at a price of ₹483 per share, aggregating to approximately ₹450 crore. The issue includes participation from promoters, promoter group entities, and institutional investors such as Tata Small Cap Fund, ICICI Prudential funds, and several Category III AIFs.
Among the key promoter participants, Vivek Saraogi and Sumedha Saraogi will subscribe to a portion of the issue, while institutional investors are expected to contribute significantly to the overall fundraise. The preferential issue is subject to shareholder approval at an Extra-Ordinary General Meeting scheduled for May 20, 2026.
In addition to the equity raise, the board has also approved the issuance of listed, secured non-convertible debentures (NCDs) worth up to ₹200 crore through private placement, to be executed in one or more tranches.
The company also revised the capital expenditure for its upcoming Poly Lactic Acid (PLA) project. The estimated cost has been increased to ₹3,080 crore from ₹2,850 crore earlier, reflecting a cost escalation of ₹230 crore due to higher construction material prices, supply chain disruptions, and design-related changes.
Further, Balrampur Chini has approved the setting up of a Lactogypsum processing plant in Kumbhi, Uttar Pradesh, with an investment of up to ₹160 crore. The facility will have an annual capacity of around 76 lakh gypsum boards and aims to improve monetisation of by-products from the PLA project.
The company plans to fund these initiatives through a mix of equity, debt, and internal accruals, indicating a broader strategy to strengthen its balance sheet while investing in new growth avenues.
The board meeting to approve these developments commenced at 11:00 AM and concluded at 2:45 PM on April 23, 2026.
Disclaimer: The above information is based on company filings and does not constitute investment advice.