Fineotex Chemical Limited has approved the allotment of 5 crore equity shares following the conversion of warrants issued on a preferential basis to a non-promoter investor. The move has increased the company’s paid-up share capital to ₹116.45 crore, as disclosed under SEBI Regulation 30.
Author: Aditya Pareek | EQMint
Fineotex Chemical Limited has informed stock exchanges about the allotment of 5,00,00,000 equity shares pursuant to the conversion of warrants earlier issued on a preferential basis. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, through a filing dated January 17, 2026.
The decision was approved by the Fund Raising Committee of the Board of Directors in its meeting held on Saturday, January 17, 2026. The meeting commenced at 3:00 PM and concluded at 3:30 PM, according to the exchange filing.
Details of Equity Shares Allotted
As per the regulatory disclosure, Fineotex Chemical allotted:
- 50,00,000 equity shares
- Face value: ₹1 per share
- Issue price: ₹38.74 per share
- Including a premium of ₹37.74 per share
The allotment followed the conversion of 5,00,000 warrants, each warrant being convertible into equity shares, issued earlier to entities belonging to the non-promoter category on a preferential basis.
The company confirmed that the newly allotted equity shares will rank pari passu in all respects with the existing equity shares.
Warrant Conversion and Fund Inflow Explained
The conversion of warrants was carried out after receipt of the balance consideration amounting to ₹14.52 crore, representing 75% of the issue price per warrant, at ₹290.55 per warrant. The remaining 25% had already been paid at the time of warrant subscription.
The warrants were originally issued at an issue price of ₹387.40 per warrant, in line with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The allotment details reveal that Intuitive Alpha Investment Fund PCC – Cell 1 was the sole allottee under this conversion, falling under the non-promoter category.
Impact on Share Capital and Shareholding Pattern
Following this equity allotment, Fineotex Chemical’s issued and paid-up share capital has increased to:
- ₹116,45,00,900, consisting of
- 116,45,00,900 equity shares of ₹1 each
Post allotment, the company disclosed that:
- Promoter and promoter group shareholding: 61.87%
- Non-promoter shareholding: 38.13%
This change reflects the impact of the preferential allotment and warrant conversion on the overall equity structure of the company.
Background on Warrants and Forfeiture
The filing also provides clarity on the broader warrant issuance undertaken earlier. Out of 28,15,049 convertible warrants allotted on July 19, 2024:
- 5,00,000 warrants have now been exercised and converted
- 23,15,049 warrants remain unexercised
As per SEBI ICDR Regulations, the unexercised warrants have lapsed, and the subscription amount of ₹22.42 crore received against them has been forfeited by the company.
Each warrant carried a tenure of up to 18 months, during which conversion could be exercised in one or more tranches.
Compliance With SEBI Regulations
The company stated that the allotment has been executed in compliance with:
- SEBI (LODR) Regulations, 2015
- SEBI ICDR Regulations, 2018
- SEBI Master Circular dated November 11, 2024
Adjustments to the number of shares, paid-up capital, and premium were also made to account for the share split and bonus issue approved by shareholders at the Extraordinary General Meeting held on October 25, 2025.
What This Means for Investors
For investors tracking preferential allotments and capital-raising activity in the specialty chemicals space, this development highlights Fineotex Chemical’s successful conversion of warrants into equity, strengthening its balance sheet and capital base.
Such allotments typically improve financial flexibility, though investors are advised to closely monitor how the company deploys the capital and its impact on earnings and long-term growth.
Conclusion
Fineotex Chemical Limited has completed a key capital-raising milestone with the allotment of 5 crore equity shares following warrant conversion under a preferential issue. The move has increased the company’s paid-up capital to ₹116.45 crore and reflects adherence to regulatory norms and transparent disclosure practices. Market participants will now watch for updates on capital utilisation and business performance going forward.
For more such information visit EQMint
Source link: BSE India
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Securities market investments are subject to market risks. Readers are advised to consult certified financial advisors or registered investment professionals before making any investment decisions.
