Ashish Kacholia’s Portfolio Stock: FCL Allots 50,00,000 Equity Shares on Conversion of Warrants to an FII

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Ashish Kacholia’s Portfolio Stock: FCL Allots 50,00,000 Equity Shares on Conversion of Warrants to an FII

The stock is up by 20 per cent from its 52-week low of Rs 19.21 per share and has given multibagger returns of over 250 per cent in 5 years.

Fineotex Chemical Limited (FCL) has approved the allotment of 50,00,000 equity shares (face value of Re 1 each) following the conversion of 5,00,000 warrants by the Intuitive Alpha Investment Fund PCC, an entity in the non-promoter category. The conversion was finalised upon the receipt of Rs 14.53 crore, representing the remaining 75 per cent of the warrant exercise price. This transaction has increased the company's paid-up share capital to Rs 116.45 crore, resulting in a revised shareholding structure where promoters hold 61.87 per cent and non-promoters hold 38.13 per cent.

While this conversion successfully processed 5,00,000 warrants, the company also confirmed the forfeiture of the remaining 2,315,049 warrants from the July 2024 allotment. These warrants lapsed as the holders did not exercise their conversion rights within the mandatory 18-month period. Consequently, the initial subscription amount of approximately Rs 22.42 crore associated with these unexercised warrants has been forfeited by the company in accordance with SEBI regulations.

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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 delivered a strong quarterly performance, seeing consolidated total income rise 15 per cent quarter-on-quarter to Rs 146.22 crore, fuelled by solid results in its textile chemicals and oil & gas segments. This operational efficiency was evident with an 18 per cent increase in EBITDA to Rs 25.20 crore and a 24 per cent jump in net profit to Rs 25.03 crore, alongside the successful completion and commissioning of a new Rs 60 crore manufacturing facility that adds 15,000 MTPA capacity. However, the company's full fiscal year 2025 results showed a decline compared to FY24, with net sales dropping to Rs 533 crore from Rs 569 crore and net profit decreasing to Rs 109 crore from Rs 121 crore.

The company has a market cap of over Rs 2,700 crore with an ROE of 18 per cent and an ROCE of 24 per cent. A Guru Investor, Ashish Kacholia, holds a 2.59 per cent stake in the company as of September 2025. The stock is up by 20 per cent from its 52-week low of Rs 19.21 per share and has given multibagger returns of over 250 per cent in 5 years.

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