Balrampur Chini Mills Limited (BCML) has approved raising up to Rs 450 crore through a preferential issue of equity shares, as part of a broader strategy to fund expansion projects and strengthen its capital structure. The decision was taken at the company’s board meeting held on April 23, 2026.
Under the approved plan, the company will issue up to 93.16 lakh fully paid-up equity shares at a price of Rs 483 per share, including a premium of Rs 482 per share. The allotment will be made to a mix of promoters, promoter group entities, and institutional investors, subject to shareholder approval at an Extra-Ordinary General Meeting (EGM) scheduled for May 20, 2026, along with other regulatory clearances. Stocks closed at Rs 540.30 per share (NSE) on Thursday.
Prominent participants in the preferential issue include promoter Vivek Saraogi, Sumedha Saraogi, and Meenakshi Mercantiles Limited, along with institutional investors such as Tata Small Cap Fund, ICICI Prudential funds, Ikigai Emerging Equity Fund, and Alchemy and 360 One investment funds. The infusion is expected to enhance the company’s financial flexibility and support ongoing and upcoming projects.
In addition to the equity raise, the board has also approved the issuance of secured, listed non-convertible debentures (NCDs) worth up to Rs 200 crore on a private placement basis. This provides BCML with an additional avenue to mobilize funds in a phased manner.
A significant portion of the capital will be directed towards the company’s ambitious Poly Lactic Acid (PLA) project at Kumbhi, Uttar Pradesh. The board has revised the project cost upward to Rs 3,080 crore from the earlier estimate of Rs 2,850 crore, citing cost escalations due to rising construction material prices, global supply chain disruptions, and design modifications.
Further, the company has approved the establishment of a Lactogypsum processing plant at the same location, with an estimated investment of up to Rs 160 crore. The facility will have a production capacity of around 76 lakh gypsum boards annually and is aimed at monetizing by-products generated from PLA manufacturing, thereby improving operational efficiency and sustainability.
The board noted that proceeds from the preferential issue will partly fund this gypsum project, reflecting a focus on value addition and resource optimization. Commercial production at the new plant is expected to commence by December 2027, subject to necessary approvals.