Chemical stock below Rs 50 in focus as company allots 50 lakh equity shares, check details here

Shares of Fineotex Chemical Ltd, which manufactures speciality chemicals, are on investors’ radar as the company has informed exchanges about the allotment of 50,00,000 equity shares pursuant to the exercise of warrants allotted on a preferential basis. Amid this, the stock started the trading session in the green even as equity benchmark indices Sensex and Nifty declined in early trade, dragged by blue-chips Reliance Industries and ICICI Bank and global tariff uncertainties. The stock started the session at Rs 23 against the previous close of Rs 22.94. However, it fell amid profit booking and touched the intraday low of Rs 22.51. Last seen, the scrip was trading at Rs 22.77 with a fall of 0.74 per cent. The market cap of the company stood at Rs 2,608.87.

On the National Stock Exchange (NSE), the stock opened flat at Rs 22.96 and later touched the intraday high and low of Rs 23.02 and 22.50. 

The stock’s 14-day relative strength index (RSI) is 36.52. For the uninitiated, a level above 70 is considered overbought or overvalued, and below 30 is defined as oversold or undervalued.

Technically, the stock trades lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Allots 50 lakh equity shares

The company, in an exchange filing, said that the board of directors of the company considered and approved the allotment of 50 lakh equity shares of face value of Re 1 each at an issue price of Rs 38.74, following the conversion of 5 lakh warrants. These warrants were issued at a price of Rs 387.40 each on a preferential basis. 

Ashish Kacholia holds stake

Ashish Kacholia held a 2.6 per cent stake or 3,000,568 equity shares, valued at Rs 6.9 crore in Fineotex Chemicals as of the September quarter, according to the latest data from Trendlyne. The investor has yet not filed its latest December information. He had previously reduced his stake by 0.1 per cent in Q2.