Balrampur Chini Mills Limited has informed the Exchange regarding 'Revision in the CAPEX for Installation of new Poly Lactic Acid (PLA) Project'.
BALRAMCHIN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Balrampur Chini Mills Board approved revision in CAPEX for its 80,000 TPA Poly Lactic Acid (PLA) project at Kumbhi, Uttar Pradesh, increasing estimated cost from Rs. 2,850 crores to Rs. 3,080 crores (an increase of Rs. 230 crores or ~8%). The cost escalation is attributed to rising construction material prices, global supply chain disruptions, and changes in engineering/design during modelling review. To fund this and other initiatives, the Board also approved a preferential issue of ~93.17 lakh equity shares at Rs. 483 per share aggregating Rs. 450 crore, issuance of NCDs up to Rs. 200 crore, and establishment of a new Lactogypsum Processing Plant at Kumbhi with an investment of up to Rs. 160 crores.
The ~8% cost overrun on the PLA project increases execution risk and funding requirements. However, the preferential equity issue brings in marquee investors like Tata Small Cap Fund and ICICI Prudential funds, signaling institutional confidence. The diversified funding approach (equity + debt + internal accruals) partially mitigates dilution concerns for existing shareholders.