Deepak Nitrite Limited ('the Company' or 'DNL') has made a regulatory disclosure to the BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding an investment in its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL).

Nature of the Event

On August 26, 2026, DCTL issued and allotted 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to two entities within the Deepak Nitrite group:

  • To Deepak Phenolics Limited (DPL): 95,00,000 (Ninety Five Lakhs) OCRPS with a face value of ₹100 each, for an aggregate investment of ₹95 Crores.
  • To Deepak Nitrite Limited (DNL): 80,00,000 (Eighty Lakhs) OCRPS with a face value of ₹100 each, for an aggregate investment of ₹80 Crores.

The total capital infusion into DCTL is ₹175 Crores. Both allotments were made at par value (₹100 per share) and the consideration was paid in cash via banking channels.

Details of the Target Entity (DCTL)

  • Name: Deepak Chem Tech Limited (DCTL)
  • Status: A company incorporated in India and a wholly-owned subsidiary of Deepak Nitrite Limited.
  • Paid-up Capital (Pre-allotment): ₹2744.5 Crores, comprising ₹499.50 Crores in Equity Shares and ₹2245 Crores in Preference Shares.
  • Operations: Currently operates plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation. It is also pursuing various projects across sites in Gujarat.
  • Financials (Turnover):
  • FY 2025-26: ₹172.23 Crores
  • FY 2024-25: ₹9.43 Crores
  • FY 2023-24: ₹0.86 Crores
  • Date of Incorporation: October 9, 2020
  • Geographic Presence: India

Transaction Classification and Basis

  • Related Party Transaction (RPT): The transaction is classified as a Related Party Transaction as per Indian Accounting Standards and the Companies Act, 2013, because both DCTL and DPL are wholly-owned subsidiaries of Deepak Nitrite Limited.
  • Basis: Both transactions were conducted on an "arm's length" basis.

Purpose and Objects of the Investment

The object of the capital infusion is to strengthen the capital base of DCTL and support it in meeting project expenses and general corporate purposes. The business of DCTL (Chemical Industry) is not outside the main line of business of the listed entity (Deepak Nitrite Limited).

Regulatory Approvals and Timeframe

  • Governmental/Regulatory Approvals: No governmental or regulatory approvals were required for this investment.
  • Timeframe: The acquisition (allotment of shares) was completed on August 26, 2026.

Ownership and Capital Structure Impact

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