Fineotex Chemical IPO: FCL IPO: Finance Trading Times

Fineotex Chemical IPO: FCL IPO

Another IPO or initial public offering is set to hit the Indian stock markets. The IPO belongs to Fineotex Chemicals.
Fineotex Chemicals FCL IPO
How many shares will be sold through the Fineotex Chemicals FCL IPO issue?
A total of 42,11,160 equity shares will be sold through the Fineotex Chemicals IPO issue.

What is the price range of Fineotex Chemicals FCL IPO shares?
The price band of Fineotex Chemicals IPO shares has been stated as Rs.35 to Rs.42 per equity share. The face value of the shares remains at Rs, 10 each.

What are the business valuations of Fineotex Chemicals FCL IPO?
As per their website: FINEOTEX group is one of the leading manufacturers of chemicals for textiles, construction, water-treatment, fertiliser, leather and paint industry. We also produce adhesives used in several industries like wood, paper etc.
• An ISO 9001:2000 certified company
• Established since several years in this manufacturing field of chemicals.
• Production capacity up to 6000MT/year approximately
• Supplying to most of the well known Companies in India and overseas
• Manufacturing entire range of products for Pretreatment Process, Dyeing Process, Printing Process and Finishing Process process for the textile processing.
• Excellent quality control in products and all stages of operation, as quality audits are been conducted by the Multinational Companies + ISO certifying bodies
• Exporting several concentrated products to European importers, who import and market in their own brand names.
• Already selling products in several countries across the globe.
• Providing the required technical sales services for establishing the process and products, focusing upon the cost factor as well as the performance and results on the fabric.
• The Group success is based on : Quality, Continuity, Flexibility, Reliability, Competitive Pricing, Technology upgrading and New product developments.

Any rating assigned to Fineotex Chemicals FCL IPO?
CARE has assigned a rating of 2 out of 5 to the Fineotex Chemicals IPO, which indicates below average fundamentals. CARE rating for Fineotex Chemicals FCL IPO is low because of the following reasons quoted by CARE:
The grading is constrained by FCL’s relatively small size of operations, dependence on IPO proceeds for the proposed project completion as the preparations for the project are still in a nascent stage, unorganized and highly competitive industry in which the company is operating, moderate corporate governance practices and limited professionalism in management. The grading is also constrained by risks associated with proposed deployment of funds from the IPO in setting up new manufacturing units.
However, the grading factors in promoters’ experience in specialty chemical sector, favourable industry scenario for speciality chemicals, comfortable gearing levels and improvement in technology for the expansion project for which the bankers have sanctioned the loans.

Where will the capital raised from Fineotex Chemicals FCL IPO be used?
The objects of the proposed public issue are to raise capital for financing the funds required for setting up of manufacturing facility for production of specialty chemicals and a sales office in Mumbai, margin money for working capital, meeting public issue expenses and other general corporate purposes. The other objects of the Issue also include creating a public trading market for the Equity Shares of the Company by listing them on BSE and NSE.
Backed by the strong demand for the specialty chemicals from diverse sectors such as Textile, Construction and Leather the company has posted an impressive growth of over 82.60% in total operating income for the year 2007-08. This also includes the income from trading operations. Operating profit and PAT margins have shown a steady increase over the same period. Table of Contents
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