Fineotex Chemical raises Rs 342.55cr through preferential allotment

In a regulatory filing, Fineotex Chemical reported the shutdown of “fundraising of Rs 342.55 crore through a preferential allotment of equity shares and convertible warrants.”

Fineotex Chemical Ltd, a prominent manufacturer of specialty chemicals, announced on Monday that it has successfully raised Rs 342.55 crore through the issuance of equity shares and warrants on a preferential basis.

Details of the Fundraising

In a regulatory filing, Fineotex Chemical Ltd confirmed the closure of this significant fundraising effort. “We have completed the fund raising of Rs 342.55 crore through a preferential allotment of equity shares and convertible warrants,” the filing stated.

Cumulative Fundraising Efforts

This latest tranche is part of a broader fundraising strategy. Sanjay Tibrewala, CFO and Executive Director at Fineotex Chemical, elaborated on the process:

“This preferential allotment aligns with the initial tranche of our fund raised on May 22, 2024, amounting to Rs 124.4 crore. The cumulative funds raised from both tranches now total Rs 342.6 crore.”

Strategic Investment Plans

The company has detailed plans for the capital raised. “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,” Tibrewala emphasized.

Implications for Growth

This infusion of capital is expected to significantly bolster Fineotex Chemical Ltd’s growth prospects.

The funds will be directed towards expanding the company’s operational capabilities and exploring new avenues for growth, both internally and through potential acquisitions.

The strategic allocation of these funds underscores Fineotex Chemical’s dedication to strengthening its market position and delivering enhanced value to its shareholders.