The initial public offer (IPO) of specialty chemicals and enzymes manufacturer Fineotex Chemical was subscribed 0.26 times by 16:00 IST on the first day of the issue today, 23 February 2011. The IPO received bids for 10.91 lakh shares compared with 42.11 lakh shares on offer.

The company is offering 42.11 lakh equity shares. The price band is set at Rs 60-72 per equity share of face value of Rs 10 each. The issue closes on 25 February 2011.

Fineotex Chemical is in the business of manufacturing specialty chemicals and enzymes consumed by the textile and garment industry, leather, water treatment, construction, paper, paint, adhesives, agrochemical and other industries.

The IPO proceeds will be used to fund the company's expansion, acquisition of plant and machinery and for general corporate purposes. The company also plans to set-up a sales office in Mumbai.

Fineotex at present has a 5,000 metric tonnes plant at Mahape in Navi Mumbai. The company plans to set-up a 13,125 metric tonnes per annum plant at Khopoli in Maharashtra which is expected to become operational by April 2012.