Ashish Kacholia’s portfolio stock: FCL successfully exercises warrants; Strong promoter participation signals robust confidence in the company’s growth outlook!

Fineotex Chemical Limited (FCL), a prominent multinational specialty performance chemical manufacturer in India, successfully completed the exercise of warrants on a preferential basis on November 21, 2025, allotting equity shares to both promoter and non-promoter investors. This capital infusion, which witnessed strong participation from the promoter group, serves as a powerful signal of their deep confidence in FCL's strategic direction, robust operational strength, and long-term value-creation prospects. The funds generated from this exercise are earmarked for crucial deployments, specifically to reinforce the company's working capital position and fund potential strategic acquisitions, thereby supporting ambitious expansion plans and strengthening its competitive standing across both domestic and international markets.

Commenting on the development of the Company, Mr Sanjay Tibrewala, Executive Director, Fineotex Chemical Limited, said, “The exercise of warrants and the significant participation from the promoter group reflect strong confidence in the strategic roadmap. This participation goes beyond a financial action; it reflects our unwavering confidence in operational capabilities and the strong business momentum visible across key segments. Our decision to further increase stake at this juncture serves as a powerful endorsement of our long-term prospects, signalling that we believe in the Company’s ability to scale, innovate and generate sustained value for all stakeholders. The additional capital will support our operations, working capital needs, and future acquisition opportunities as we continue to build on our growth momentum.”

About the Company

Fineotex Chemical Limited is a leading Indian multinational producer of specialty performance chemicals, offering sustainable, technology-driven solutions for industries such as textile and garment processing, home care, water treatment and oil & gas. With advanced manufacturing facilities in Ambernath (India) and Selangor (Malaysia) and a new plant planned for Ambernath, Fineotex is committed to innovation and sustainability. The company serves clients in approximately 70 countries through an extensive network of over 103 dealers and distributors in India, supported by an NABL-accredited R&D laboratory. Fineotex consistently delivers innovative, reliable and eco-friendly solutions to meet global market demands.

Fineotex Chemical's Quarterly Results show a strong financial performance, with consolidated total income rising 14.8 per cent quarter-on-quarter to Rs 146.22 crore. This was driven by solid performance in its textile chemicals and oil & gas businesses. The company's operational efficiency is highlighted by an 18.3 per cent increase in EBITDA to Rs 25.20 crore and a 24.3 per cent jump in net profit to Rs 25.03 crore. Additionally, Fineotex successfully completed a Rs 60 crore expansion project, commissioning a new manufacturing facility that adds 15,000 MTPA to its capacity to meet growing demand.

For the full fiscal year 2025 (FY25), the company reported net sales of Rs 533 crore, down from Rs 569 crore in FY24. Net profit for FY25 also saw a decline, reaching Rs 109 crore compared to Rs 121 crore in FY24. Fineotex Chemical Limited involved a 1:2 stock split (Rs 2 face value to Re 1) followed by a 4:1 bonus share issue, which significantly increased investor Ashish Kacholia's holding from 30,00,568 to 2,40,04,544 shares. This dual action is executed to boost liquidity and retail accessibility. The company has a market cap of over Rs 2,800 crore with an ROE of 18 per cent and an ROCE of 24 per cent. The stock is up by 29.6 per cent from its 52-week low of Rs 19.21 per share and has given multibagger returns of 475 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.