Deepak Chem Tech Limited, a wholly owned subsidiary of Deepak Nitrite Limited, has issued and allotted 1,50,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to Deepak Phenolics Limited, another wholly owned subsidiary of the company. The shares, having a face value of ₹100 each, amount to a total of ₹150 crore.
Deepak Chem Tech Limited (DCTL) is an Indian company operating in the chemical industry, with a focus on fluorination, nitric acid, nitration, and hydrogenation. The company’s current paid-up capital stands at ₹2234.50 crore, which includes ₹499.50 crore of equity shares and ₹1735 crore of preference shares. The turnover for the financial year 2024-25 was ₹9.43 crore.
The transaction between DCTL and Deepak Phenolics Limited (DPL) is considered a related party transaction, as both entities are wholly owned subsidiaries of Deepak Nitrite. The allotment of OCRPS is made at par value, aggregating to ₹150 crore, and is conducted on an “arms length” basis.
The infusion of funds into DCTL by DPL aims to strengthen DCTL’s capital base and support its project expenses and general corporate purposes. The business activities of DCTL align with the main line of business of Deepak Nitrite, the listed entity.
No governmental or regulatory approvals were required for this investment, and the allotment of the OCRPS was completed on 30th April 2026. The consideration for the transaction was made in cash through normal banking channels.
Prior to this allotment, Deepak Nitrite held 100% of the equity share capital and, along with DPL, indirectly held 100% of the preference share capital of DCTL. This structure remains unchanged post-allotment.
Deepak Chem Tech Limited was incorporated on 9th October 2020 and has been pursuing various projects across sites in Gujarat. The company’s turnover for the financial year 2023-24 was ₹0.86 crore, while figures for the financial year 2022-23 were not available.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).