Balrampur Chini Mills Ltd announces ₹450 Crore Fundraising and Strategic Expansion into Gypsum Processing

Balrampur Chini Mills Limited (BCML) has unveiled a major financial and strategic roadmap following its Board of Directors meeting on Thursday, April 23, 2026. The company is set to raise approximately ₹450 crore through a preferential equity issue and has approved the establishment of a new industrial plant to bolster its sustainable manufacturing portfolio.

Strategic Capital Raise via Preferential Issue

The Board has approved the issuance of up to 93,16,771 fully paid-up equity shares at a price of ₹483 per share. This preferential allotment aims to raise a total of ₹450,00,00,393 from a diverse group of 11 investors, including promoters and prominent institutional funds.

Key participants in this funding round include:

Promoters: Vivek Saraogi and Sumedha Saraogi.

Institutional Investors: TATA Small Cap Fund, Ikigai Emerging Equity Fund, 360 One Pipe Fund, and various series of the ICICI Prudential Strategic Alpha Fund and Alchemy Alternative Investment Trust.

To finalize this issuance, the company has convened an Extra-Ordinary General Meeting (EGM) for shareholders on Wednesday, May 20, 2026. Additionally, the Board gave an enabling approval to raise up to ₹200 crore through the private placement of Listed, Secured, Non-Convertible Debentures (NCDs).

Expansion into Gypsum Board Manufacturing

In a significant move toward circular economy practices, Balrampur Chini has greenlit the establishment of a Lactogypsum Processing Plant in Kumbhi, Uttar Pradesh.

With an estimated investment of ₹160 crore, the facility will have the capacity to produce 76 lakh gypsum boards annually. The plant is designed to process Lactogypsum-a by-product generated from the company's Poly Lactic Acid (PLA) manufacturing-thereby adding value to waste streams and improving overall monetization. Commercial production is slated to begin around December 2027.

Updates to Poly Lactic Acid (PLA) Project

The Board also addressed the progress of its ongoing 80,000 tonnes per annum (TPA) PLA Project. Due to global supply chain disruptions, rising costs of construction materials, and design refinements, the estimated capital outlay has been revised:

Original Capex: ₹2,850 crore

Revised Capex: ₹3,080 crore (reflecting an escalation of ₹230 crore)

This revised investment will be financed through a combination of the newly proposed preferential equity issue, debt, and internal accruals.

Financial Stability and Future Outlook

The infusion of capital is expected to significantly strengthen the company's balance sheet. Following the allotment, promoter Vivek Saraogi's stake is expected to rise from 2.66% to 3.68%, while the TATA Small Cap Fund will increase its holding to 2.02%.


By integrating by-product processing and securing fresh capital, Balrampur Chini Mills Limited continues to pivot toward a more diversified and sustainable industrial model, moving beyond traditional sugar manufacturing into high-value biochemicals and construction materials.

Shares of Balrampur Chini Mills Limited was last trading in BSE at Rs. 541.40 as compared to the previous close of Rs. 541.60. The total number of shares traded during the day was 110274 in over 3374 trades.

The stock hit an intraday high of Rs. 552.35 and intraday low of 531.50. The net turnover during the day was Rs. 60105198.00.

Source : Equity Bulls

Keywords

BalrampurChiniMills INE119A01028 Sugar FundRaising StrateticExpansion GypsumProcessing