The proposed allotment, subject to shareholder approval, will be taken up at an extraordinary general meeting scheduled for May 20.
Also read: IIFL Finance shares fall 9%, most in three months, turns negative for April
Separately, the board also approved raising up to ₹200 crore through listed, secured non-convertible debentures (NCDs) via private placement in one or more tranches.In addition, the company revised the capital outlay for its 80,000 tonnes per annum Poly Lactic Acid (PLA) project to ₹3,080 crore from ₹2,850 crore earlier, citing cost escalations of around ₹230 crore due to higher construction material prices, supply chain disruptions and design changes. The enhanced capex will be funded through a mix of equity, debt and internal accruals.
Balrampur Chini also approved setting up a lactogypsum processing plant at Kumbhi, Uttar Pradesh, with an investment of up to ₹160 crore. The facility, with a capacity of around 76 lakh gypsum boards annually, will utilise by-products from the PLA project to improve value realisation.
The developments are part of the company’s broader strategy to diversify into value-added and sustainable product segments while strengthening its capital structure.
Following the announcement, shares of the company ended 1.58% lower at ₹533 on Thursday. The stock has gained 12.57% over the last month and 21.6% year-to-date.
