Fineotex Chemical Limited has announced a substantial equity allotment following the successful conversion of warrants issued on a preferential basis. The specialty chemicals manufacturer completed the allotment of 50 lakh equity shares, marking a significant expansion in its share capital structure.

Major Equity Allotment Details

The Board's Fund Raising Committee authorized the equity allotment during its meeting held on January 17, 2026. The allotment specifics demonstrate the company's successful capital raising initiative:

The allotment resulted from the conversion of 5 lakh warrants by Intuitive Alpha Investment Fund PCC - Cell 1, classified under the non-promoter category. The company received the remaining consideration of ₹14.52 crore, representing 75% of the warrant issue price, completing the conversion process.

Warrant Conversion Structure

The warrant conversion followed a structured payment mechanism established during the initial issuance. Each warrant carried specific financial terms that facilitated the conversion process:

The conversion terms were appropriately adjusted following the share split and bonus issue authorized by shareholders at the Extraordinary General Meeting held on October 25, 2025. The newly issued equity shares carry identical rights to existing shares, including voting and dividend entitlements.

Updated Capital Structure

Following the completion of this allotment, Fineotex Chemical Limited's financial structure has been significantly enhanced. The company's issued and paid-up share capital has expanded substantially:

Outstanding Warrant Status

The company has also provided comprehensive details regarding the status of previously issued convertible warrants. Of the 28.15 lakh warrants originally issued on July 19, 2024, only 5 lakh warrants have been exercised to date.

Significantly, the remaining 23.15 lakh unexercised warrants have been forfeited in accordance with SEBI ICDR Regulations. The warrant holders failed to exercise their conversion rights within the stipulated 18-month timeframe, resulting in the forfeiture of approximately ₹22.42 crore in subscription proceeds.

Company Profile

Fineotex Chemical Limited operates as a leading manufacturer of specialized performance chemicals, serving diverse industrial sectors including textile, water treatment, oil and gas, and home care industries. The company maintains a global presence across more than 70 countries, supported by state-of-the-art production facilities located in India and Malaysia, focusing on innovation, sustainability, and performance excellence in international markets.

Fineotex Chemical Limited has successfully completed its strategic acquisition of Crude Chem Technologies Group, marking a transformational milestone in the company's international expansion strategy. The acquisition, valued at $11.50 million, provides Fineotex with a controlling 53.33% stake in four US-based specialty oilfield chemical companies through its subsidiary Fineotex Biotex Healthguard FZE.

Strategic Acquisition Overview

The Crude Chem Technologies Group represents a comprehensive ecosystem of specialty oilfield chemical companies with established operations in key US oil hubs, including Midland and Brookshire in Texas. The acquired group generates combined annual revenue of $68.00 million and operates as a debt-free entity with strong customer relationships across the North American energy sector.

Market Position and Growth Potential

The acquisition positions Fineotex Chemical strategically within the North American oilfield chemicals market, which represents an $11.50 billion opportunity. Crude Chem Technologies maintains established relationships with major global energy producers and oilfield service companies, providing immediate access to Tier 1 customers and long-term contracts.

Executive Director Aarti Jhunjhunwala emphasized the transformational nature of the deal, stating that the acquisition enhances market presence internationally while bringing scientific depth through Crude Chem's robust R&D infrastructure in Texas. The technical ecosystem accelerates innovation roadmaps and enables faster product development tailored to global oilfield requirements.

Operational Synergies and Integration

The acquisition creates significant operational synergies between Fineotex's manufacturing capabilities and Crude Chem's technical expertise. Business Head Sachin Bandodkar highlighted five key advantages:

• Advanced fluid additives for mission-critical, high-performance solutions
• High-performance chemical technologies for maximizing reservoir output
• ESG-compliant solutions aligning with core company values
• World-class technical capabilities for customized solution development
• Long-standing relationships with leading global energy producers

Financial Impact and Consolidation Timeline

CFO Sanjay Tibrewala confirmed that approximately $25.00-30.00 million of the acquisition value will be introduced as primary capital to support the company's growth initiatives. The consolidation of Crude Chem's numbers into Fineotex's financial statements is expected to begin from December 15, with full integration anticipated from January 1, 2026.

The management expects to achieve at least 25% CAGR growth from the Crude Chem operations going forward. The acquisition is structured to be EPS-accretive and supports Fineotex's strategic objective to build a $200.00 million oilfield specialty chemicals business within the coming years.

Future Expansion Plans

The company maintains strong financial position with over ₹300.00 crores in cash and bank balances, sufficient to fund the acquisition and planned future investments without requiring additional debt financing. Management indicated plans for additional investments exceeding $10.00 million in plant and machinery expansion, including potential facilities in the Middle East to capitalize on growing regional opportunities.

The acquisition agreement includes provisions for Fineotex to acquire an additional 25% stake by January 2028, which would increase total ownership to 78.33% based on future valuations. All three founding partners of Crude Chem Technologies will continue their involvement in the business, ensuring continuity of technical expertise and customer relationships.