Deepak Nitrite Limited disclosed an inter-subsidiary investment transaction through a regulatory filing to BSE Limited. The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following SEBI's Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026.

Transaction Details

Deepak Chem Tech Limited (DCTL), a wholly owned subsidiary of Deepak Nitrite Limited, issued and allotted 1,20,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹100 each to Deepak Phenolics Limited (DPL), another wholly owned subsidiary of Deepak Nitrite Limited. The total transaction value amounts to ₹120.00 Crores, with shares allotted at par value (₹100 per share).

Target Entity Information

Deepak Chem Tech Limited is an Indian company incorporated on October 9, 2020, operating in the chemical industry. Prior to this allotment, DCTL's paid-up capital stood at ₹2624.50 Crores, consisting of ₹499.50 Crores of Equity Shares and ₹2,125 Crores of Preference Shares. The company operates plants for fluorination, nitric acid, nitration, and hydrogenation, and is pursuing projects across various sites in Gujarat.

Financial Performance

DCTL's turnover history shows significant growth: FY2023-24 - ₹0.86 Crores, FY2024-25 - ₹9.43 Crores, and FY2025-26 - ₹172.23 Crores.

Related Party Transaction

Both DCTL and DPL are wholly owned subsidiaries of Deepak Nitrite Limited, making this a Related Party Transaction under Indian Accounting Standards and Companies Act, 2013. The transaction was conducted at "arm's length" basis.

Ownership Structure Impact

Prior to this allotment, Deepak Nitrite Limited held 100% of Equity Share Capital and along with DPL, held indirectly 100% of Preference Share Capital of DCTL. After the allotment, Deepak Nitrite Limited continues to hold 100% of Equity Share Capital of DCTL and along with DPL, holds indirectly 100% of Preference Share Capital of DCTL.

Purpose and Objects

The infusion of funds aims to strengthen DCTL's capital base and support project expenses and general corporate purposes. The business carried on by DCTL is within the main line of business of the listed entity.

Regulatory Approvals

No governmental or regulatory approvals were required for this investment.

Transaction Completion

The allotment was completed on July 28, 2026.