Specialty Chemical Stock Okays Fundraising of Rs. 342.55 Cr Via Preferential Basis

On Monday, Fineotex Chemical stated that it has successfully raised Rs. 342.55 crores through the preferential offering of convertible warrants and equity shares in two phases. The first allotment took place on May 22, 2024, while the second allotment took place on July 19, 2024.

In the first phase, the company issued 2,626,600 convertible warrants at a price of Rs 346 per warrant, for a total of Rs 90.88 crores, and 970,000 equity shares at an issue price of Rs 346 per share, for a total of Rs 33.56 crores. A payment in advance of Rs 22.72 crores, or 25% of the total amount of warrants issued, has been issued to the corporation. After 18 months from May 22, 2024, each warrant is convertible into one fully paid-up equity share upon receipt of payment of Rs 259.50 per warrant (the remaining 75% of the issue price).

The company issued 2,815,049 equity shares at an issue price of Rs 387.40 per share during phase 2, which added up to Rs 109.05 crores. Additionally, 2,815,049 convertible warrants were issued at the same price, totalling Rs 109.05 crores. The company has received an upfront payment of Rs 27.26 Crores, representing 25% of the total warrant issue size. After receiving payment of Rs 290.55 per warrant (the remaining 75% of the issue price) within 18 months starting on July 19, 2024, each warrant is convertible into one fully paid-up equity share.

Mr. Sanjay Tibrewala, CFO and Executive Director, Fineotex Chemical, said: "This preferential allotment aligns with the initial tranche of our fund raised on May 22, 2024, amounting to INR 124.4 Crores. The cumulative funds raised from both tranches now total INR 342.6 Crores. As of today, Fineotex has received INR 192.6 Crores equity allotment and warrant subscriptions. The capital raised will be invested strategically to support both organic and inorganic growth opportunities, reinforcing our commitment to enhancing shareholder value and advancing operational excellence"

Fineotex is a prominent manufacturer of specialty chemicals, holding a dominant market share in the global textile sector. Biotex, the Malaysian subsidiary, is in charge of all R&D projects and overall product development. Renowned international groups like ZDHC and Bluesign have honoured FCL for its sustainable efforts. Key global textile centres like Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, the United States, and Vietnam are among the business's well-diversified clientele.