Ashish Kacholia's portfolio high ROE & high ROCE multibagger chemicals stock: Company to raise funds over Rs 200 crore via preferential issue; FIIs to buy stake in this issue!

The stock gave multibagger returns of 300 per cent in 3 years, 855 per cent returns in 5 years and a whopping 5,150 per cent in a decade.

Fineotex Chemical Limited is looking to raise funds through the issue of equity shares and convertible warrants. Here's a breakdown of the details:

Equity Shares: The company will issue up to 28,15,049 new equity shares with a face value of Rs 2 each to certain non-promoter investors. These shares will be priced at Rs. 387.40 per share, which includes a premium of Rs. 385.40. This will raise a maximum of Rs 109,05,49,983.

Convertible Warrants: Fineotex Chemical will also issue up to 28,15,049 convertible warrants. Each warrant can be converted into one equity share with a face value of Rs 2. Similar to the equity shares, these warrants are priced at Rs 387.40 each (including a premium of Rs. 385.40). This can potentially raise another Rs 109,05,49,983 for the company.

In the fundraising these names appeared as mentioned on both the exchanges in the press release they are Intuitive Alpha Investment Fund PCC -Cell 1; Forbes EMF & Coeus Global Opportunities Fund.

Fineotex Chemical Ltd, founded in 1979, is a leading manufacturer of speciality chemicals for various industries. Their core business is textile chemicals, with a focus on research and development through their subsidiary Biotex Malaysia. They also offer cleaning and hygiene products like sanitisers and detergents. Fineotex boasts over 470 product categories, including chemicals for every stage of textile production, oil and water-based drilling fluids, and home care disinfectants. With a presence in over 70 countries and a network of over 100 dealers, they serve major clients like Nahar Group and Raymond in the textile industry.

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The consolidated business delivered positive results in Q4 and FY 2023-2024. Revenue from operations grew steadily, reaching Rs 15,301.72 lakh in Q4, reflecting an 11.13 per cent increase year-over-year compared to Rs 13,768.95 lakh. This positive trend continued throughout the fiscal year, with total revenue reaching Rs 56,897.04 lakh, a 10.05 per cent increase from Rs 51,699.57 lakh the prior year. Profitability also showed strong improvement. Profit after tax (PAT) climbed to Rs 3,047.53 lakh in Q4, representing a 17.21 per cent rise from Rs 2,599.95 lakh. The PAT growth for the entire fiscal year was even more impressive, reaching Rs 12,102.49 lakh, a significant 35.14 per cent increase compared to Rs 8,955.48 lakh the previous year. Adding to the positive performance, the consolidated business achieved a substantial 25.51 per cent year-over-year volume growth for the fiscal year.

The company's board recommended a final dividend of Rs 0.40 per share (20 per cent of face value) for fiscal year 2023-24, subject to shareholder approval at the annual general meeting. This brings the total dividend for the year to Rs 1.60 per share (80 per cent of face value) after considering the Rs 1.20 interim dividend already paid. This translates to a total payout of Rs 17,75,92,099.60. Additionally, the company achieved a strong return on capital employed (ROCE) of approximately 34.4 per cent and a return on equity (ROE) of approximately 29.9 per cent for the same fiscal year.

Today, shares of Fineotex Chemical Ltd (FCL) gained 4.52 per cent to Rs 370 per share with an intraday high of Rs 370 and an intraday low of Rs 361 from its previous closing of Rs 354. An ace investor, Ashish Kacholia has 31,35,568 shares or 2.83 per cent stake in the company. This company is financially strong with a market cap exceeding Rs 4,000 crore. The stock gave multibagger returns of 300 per cent in 3 years, 855 per cent returns in 5 years and a whopping 5,150 per cent in a decade. 

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