Balrampur Chini Mills Limited (BCML) has laid out an ambitious financial and expansion strategy after its Board meeting on April 23, 2026, approving a Rs. 450 crore capital raise alongside a significant push into sustainable manufacturing.
The company will issue up to 93,16,771 fully paid equity shares at ₹483 per share through a preferential allotment, targeting a total fundraise of Rs. 450,00,00,393.
The issue will be subscribed by 11 investors, including promoters and leading institutional funds. Key participants include promoters Vivek Saraogi and Sumedha Saraogi, alongside institutional investors such as TATA Small Cap Fund, Ikigai Emerging Equity Fund, 360 One Pipe Fund, and multiple series of ICICI Prudential Strategic Alpha Fund and Alchemy Alternative Investment Trust.
To secure shareholder approval, BCML has scheduled an Extra-Ordinary General Meeting for May 20, 2026. The Board has also cleared an enabling proposal to raise up to Rs. 200 crore through private placement of Listed, Secured, Non-Convertible Debentures (NCDs).
In a major sustainability-driven expansion, the company has approved a Rs. 160 crore Lactogypsum Processing Plant in Kumbhi, Uttar Pradesh.
The facility will produce 76 lakh gypsum boards annually and will process Lactogypsum, a by-product of the company’s Poly Lactic Acid (PLA) operations—turning industrial waste into commercial output. The plant is expected to commence operations by December 2027.
BCML also updated its ongoing 80,000 TPA PLA project, citing global supply chain disruptions, higher construction costs, and design modifications. The project cost has been revised from Rs. 2,850 crore to Rs. 3,080 crore, an increase of Rs. 230 crore.
Funding will be structured through a mix of the newly proposed equity raise, debt, and internal accruals.
The capital infusion is expected to reinforce the company’s financial position while supporting its expansion into green chemicals and circular manufacturing.
Post allotment, promoter Vivek Saraogi’s stake is projected to rise from 2.66% to 3.68%, while TATA Small Cap Fund’s holding will increase to 2.02%.
