Deepak Nitrite Subsidiary Invests ₹120 Crores

Nature of the Event

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, aggregating to ₹120.00 Crores, to Deepak Phenolics Limited (DPL), another wholly owned subsidiary, on July 10, 2026.

Key Quantitative Figures

• Number of OCRPS allotted: 1,20,00,000
• Face value per share: ₹100
• Total investment amount: ₹120.00 Crores
• Turnover of DCTL in FY 2025-26: ₹172.23 Crores
• Turnover in FY 2024-25: ₹9.43 Crores
• Turnover in FY 2023-24: ₹0.86 Crores

Parties Involved

• Issuer: Deepak Chem Tech Limited (DCTL)
• Investor: Deepak Phenolics Limited (DPL)
• Parent company: Deepak Nitrite Limited
• Both DCTL and DPL are wholly owned subsidiaries of Deepak Nitrite Limited and are related parties as per Indian Accounting Standards and Companies Act, 2013.

Purpose and Rationale

• To strengthen the capital base of DCTL.
• Support DCTL in carrying out project expenses and general corporate purpose.
• The business of DCTL is not outside the main line of business of Deepak Nitrite Limited.

Financial and Operational Impact

• Transaction conducted on an arms-length basis at par value (₹100 per share).
• No governmental or regulatory approvals required for the investment.
• Post-allotment, Deepak Nitrite Limited continues to hold 100% of the equity share capital of DCTL, and along with DPL, holds 100% of the preference share capital indirectly.
• DCTL currently operates plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation, with projects across various sites in Gujarat.
• Country of operation: India.

Consideration

• Cash consideration transferred via normal banking channels.

Capital Structure Impact

• No change in equity shareholding; Deepak Nitrite Limited maintains 100% indirect control over DCTL.