Monitoring Agency Report for the quarter ended March 31, 2026 for the Preferential Allotment made on May 22, 2024
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ICRA Limited, the Monitoring Agency, has submitted its final report for Q4 FY2026 on the utilization of proceeds from Fineotex Chemical's preferential issue of equity shares and convertible warrants opened on May 13, 2024 and closed on May 22, 2024. The original issue size was Rs. 280.35 crore but was revised downward to Rs. 91.963 crore due to undersubscription. Of the 26,26,600 convertible warrants allotted, 13,75,000 have been exercised for conversion while the remaining 12,51,600 warrants — along with the Rs. 32.48 crore subscription amount received — were forfeited under SEBI ICDR Regulations. The proceeds have been deployed as planned: Rs. 16.762 crore for working capital, Rs. 55.755 crore for business expansion, and Rs. 19.446 crore for general corporate purposes. ICRA confirms no material deviation in utilization and notes that cost variations across heads remain within a +/-10% range.
The forfeiture of unexercised warrants reduces the total capital raised, but the converted warrants and deployed proceeds indicate the issue has been substantially executed as intended. Shareholders can note that fund utilization has been verified by an independent agency with no red flags.