Mumbai (Maharashtra) [India], November 22: Fineotex Chemical Limited, a leading manufacturer of specialty chemicals, has successfully fortified its financial standing with the completion of a significant equity shares allotment, approved by the Fund Raising Committee of its Board of Directors on November 21, 2025. The committee sanctioned the allotment of 1,37,50,000 equity shares at an issue price of Rs. 34.60 per share. This strategic move follows the conversion of 13,75,000 warrants issued earlier on a preferential basis and was executed after the company received a substantial sum of Rs. 35,68,12,500 from the allottees. This infusion of capital marks a pivotal enhancement to the company’s capital structure, underscoring its proactive approach to financial management and growth.
Consequent to this allotment, Fineotex Chemical's issued and paid-up share capital has been strengthened, now standing at Rs. 115,95,00,900. This capital is composed of 115,95,00,900 equity shares, each with a face value of Re. 1. The newly issued shares will enjoy the same rights and privileges as the existing equity shares, ensuring uniformity and fairness across the shareholder base. The conversion process for the 13,75,000 warrants was governed by an exercise price of Rs. 346 per warrant, with a stipulated exercise period of 18 months from the date of the original warrant allotment. Any warrants not exercised within this timeframe will lapse, a measure designed to streamline the company's capital-raising efforts and maintain a robust financial foundation.
In a parallel development that highlights its commitment to enhancing shareholder value, Fineotex Chemical recently received overwhelming shareholder approval for a stock split and a bonus share issue. The company disclosed in a regulatory filing that an extraordinary general meeting saw 99.99 percent of votes cast in favour of both resolutions. The approved stock split will sub-divide the face value of each share from Rs. 2 to Re. 1, effectively converting each existing equity share into two new shares. This move is aimed at improving liquidity and making the shares more accessible to a broader investor base.
Additionally, shareholders endorsed the issuance of bonus shares in a 4:1 ratio. Following the stock split, eligible shareholders will receive four fully paid-up equity shares of Re. 1 each for every one share of Re. 1 held. This bonus issue represents the company's second such distribution, with the first having been announced in 2015 in a 1:1 ratio, according to BSE data. The company plans to announce a record date in the near future to determine the shareholders eligible for both the stock split and the bonus issue, ensuring a transparent and efficient process.
Fineotex Chemical Limited, incorporated in 1979, has established itself as a key player in the manufacturing of auxiliaries and specialty chemicals. Its diverse product portfolio serves critical industries including textiles, construction, water treatment, fertilizer, leather, and paints. The latest financial initiatives, encompassing both the equity allotment and the shareholder-friendly actions of stock split and bonus issue, reflect the company’s strategic vision to drive sustainable growth while rewarding its investors. These steps are expected to bolster investor confidence and support Fineotex Chemical's long-term objectives in a dynamic market environment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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