Fineotex Chemical Limited, a leading specialty chemical manufacturer, announces the successful fund raising of Rs. 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 Rs. 33.56 crores and 2,626,600 convertible warrants at a price of Rs. 346 per warrant, aggregating to Rs. 90.88 crores. The company has received an upfront payment of Rs. 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 Rs. 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 Rs. 387.40 per share, aggregating to Rs. 109.05 crores and 2,815,049 convertible warrants at the same price, aggregating to Rs. 109.05 Crores. The company has received an upfront payment of Rs. 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 Rs. 290.55 per warrant (remaining 75% of the issue price) within 18 months from 19 July 2024.

Commenting on the fund raise, 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 Rs. 124.4 crores. The cumulative funds raised from both tranches now total Rs. 342.6crores. As of today, Fineotex has received Rs. 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."