Fineotex Chemicals, engaged in manufacturing specialty chemicals and enzyme for various industries, has filed its DRHP on 5TH March, 2008 with SEBI for entering the capital market with a public issue of 42.11 lakh equity shares of Rs 10 each at a price to be decide through the 100% book building process. The issue will constitute 37.50% of the post issue paid-up capital of the company.
The BRLM to the issue is First Overseas Capital. The company intends to list its shares on BSE and NSE.
The company is raising the money through the IPO to part finance the setting up of a manufacturing facility of 13,125 mt per annum at a cost of Rs 7.14 crore; to set up a sales office at an outlay of Rs 1.80 crore and Rs 2.08 crore as margin money for working capital requirement.
Fineotex Chemicals, incorporated in 2004, is engaged in trading and manufacturing of large number of specialty chemicals which find applications in the textiles and garments processing, namely the pre-treatment, printing, dyeing and finishing process. The company also offers specialty performance chemicals to the leather, agrochemicals, construction, water treatment, wood and adhesives industries etc. The company has a wide and varied customer base. Some of the major customers of the company are Clariant India, BASF, Pidilite Industrises, Bombay Dyeing, Raymond and Grasim among others.
The company has its current manufacturing unit in Navi Mumbai.
The turnover of the company for the period ending 31st March 2007 was Rs 1.05 crore and net profit was Rs 26,000. And for the six months ended 30.9.07, the turnover was Rs 13.65 crore and net profit was Rs 1.69 crore.