Deepak Nitrite Limited has announced a significant investment in its wholly owned subsidiary, Deepak Chem Tech Limited (DCTL). The investment, totalling ₹135 crore, involves the issuance and allotment of 9% Optionally Convertible Redeemable Preference Shares (OCRPS) by DCTL.
DCTL has issued 1,10,00,000 OCRPS with a face value of ₹100 each, aggregating to ₹110 crore, to Deepak Phenolics Limited (DPL), another wholly owned subsidiary of Deepak Nitrite. Additionally, 25,00,000 OCRPS with a face value of ₹100 each, totalling ₹25 crore, have been allotted to Deepak Nitrite itself. Both transactions were conducted at par value and on an ‘arms length’ basis.
The investment aims to bolster DCTL’s capital base and support its project expenses and general corporate purposes. DCTL, incorporated in India and operating in the chemical industry, specialises in fluorination, nitric acid, nitration, and hydrogenation processes. The company is also engaged in various projects across sites in Gujarat.
DCTL’s current paid-up capital stands at ₹2,099.50 crore, comprising ₹499.50 crore in equity shares and ₹1,600 crore in preference shares. The turnover for the financial year 2024-25 was reported at ₹9.43 crore.
The acquisition does not require any governmental or regulatory approvals, and the transactions were completed on 26th March 2026. Prior to this allotment, Deepak Nitrite held 100% of DCTL’s equity share capital and, along with DPL, indirectly held 100% of its preference share capital. This ownership structure remains unchanged post-allotment.
Deepak Chem Tech Limited was incorporated on 9th October 2020 and operates solely within India. The company’s turnover for the financial years 2023-24 and 2022-23 were ₹0.86 crore and not applicable, respectively.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).