Fineotex Chemical Limited (“Fineotex” or the “Company”), a leading speciality chemical manufacturer, announces the successful fundraising of INR 342.5 Crores through a preferential allotment of equity shares and convertible warrants.
The fund-raising was executed in two distinct phases:
Phase I: The Company allotted 970,000 equity shares at an issue price of INR 346 per share, aggregating to INR 33.56 Crores and 2,626,600 convertible warrants at a price of INR 346 per warrant, aggregating to INR 90.88 crores. The company has received an upfront payment of INR 22.72 crores, representing 25% of the total warrant issue size. Each warrant is convertible into one fully paid-up equity share upon the receipt of payment of INR 259.50 per warrant (Remaining 75% of the issue price) within 18 months from 22 May 2024.
Phase II: The Company allotted 2,815,049 equity shares at an issue price of INR 387.40 per share, aggregating to INR 109.05 crores and 2,815,049 convertible warrants at the same price, aggregating to INR 109.05 Crores. The company has received an upfront payment of INR 27.26 Crores, representing 25% of the total warrant issue size. Each warrant is convertible into one fully paid-up equity share upon the receipt of payment of INR 290.55 per warrant (Remaining 75% of the issue price) within 18 months from 19 July 2024.
Commenting on the fund raise 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”
