Fineotex : Chemical Limited has taken a significant corporate step by approving the allotment of new equity shares following the conversion of previously issued convertible warrants. This development reflects the company’s proactive approach toward strengthening its financial structure and supporting long-term business objectives. The decision aligns with regulatory requirements and underlines management’s confidence in the company’s growth trajectory, market positioning, and future expansion plans.
The Fundraising Committee of the Board of Fineotex Chemical Limited approved the allotment of 50,00,000 equity shares at its meeting held on January 17, 2026. This approval was granted in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The allotment resulted from the successful conversion of 5,00,000 convertible warrants that were earlier issued on a preferential basis.
This step demonstrates the company’s commitment to transparent governance and timely disclosure, while also ensuring that capital-raising initiatives are executed within the established regulatory framework.
The newly allotted equity shares carry a face value of one rupee each and were issued at an effective price of thirty-eight rupees and seventy-four paise per share. This price includes a premium component, reflecting investor confidence and the underlying value of the business. The conversion follows the original issue price of the warrants, which was set at three hundred eighty-seven rupees and forty paise per warrant prior to adjustments related to corporate actions.
Upon exercise of the warrants, the company received an aggregate amount of approximately fourteen crore and fifty-two lakh rupees. This amount represents the balance seventy-five percent of the warrant issue price, as a portion had already been collected at the time of the initial warrant issuance.
The equity shares arising from the warrant conversion have been allotted to Intuitive Alpha Investment Fund PCC – Cell 1. This investor falls under the non-promoter category, thereby contributing to a balanced and diversified shareholding structure. Such participation from institutional or professional investment entities often enhances market credibility and supports improved corporate governance standards.
The involvement of a non-promoter investor also signals external confidence in the company’s operational performance, strategic direction, and long-term potential.
The entire process of warrant conversion and equity allotment has been carried out in accordance with the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018. Additionally, the number of equity shares issued, along with the corresponding face value and premium, has been adjusted to account for the company’s earlier share split and bonus issue. These corporate actions were approved by shareholders at the Extraordinary General Meeting held on October 25, 2025.
Such adjustments ensure consistency in capital structure reporting and maintain fairness among existing and new shareholders. The newly allotted shares rank pari passu with existing equity shares, meaning they carry equal rights in terms of voting, dividends, and other shareholder benefits.
Following this allotment, the issued and paid-up equity share capital of the company has increased to approximately one hundred sixteen crore and forty-five lakh rupees. This capital is now represented by an equivalent number of equity shares with a face value of one rupee each.
Post allotment, the promoter and promoter group collectively hold around sixty-one point eighty-seven percent of the company’s equity, while non-promoter shareholders account for approximately thirty-eight point thirteen percent. This ownership distribution reflects a stable promoter holding alongside meaningful participation from public and institutional investors.
The infusion of fresh capital through this allotment significantly strengthens the company’s balance sheet. Improved financial flexibility allows the business to pursue operational expansion, invest in capacity enhancement, and support strategic initiatives aimed at long-term value creation.
The company continues to focus on innovation, development of value-added products, and expansion across domestic as well as international markets. By reinforcing its financial foundation, Fineotex Chemical Limited is better positioned to respond to evolving market demands, manage risks, and capitalize on emerging opportunities within the speciality chemicals sector.
This equity allotment marks an important milestone in the company’s ongoing growth journey. It reflects prudent capital management, regulatory compliance, and a forward-looking strategy designed to enhance shareholder value. As the company builds on its strengths and explores new avenues for expansion, such initiatives are expected to contribute positively to sustainable growth and competitive advantage over the long term.
