Deepak Nitrite Limited announced that its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted preference shares to its parent company and another subsidiary, Deepak Phenolics Limited (DPL). DCTL allotted 80,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) worth ₹80 crore to Deepak Nitrite Limited and 95,00,000 OCRPS valued at ₹95 crore to Deepak Phenolics Limited. These funds are intended to strengthen DCTL’s capital base and support its project and general corporate expenses.
Deepak Chem Tech Completes Preference Share Allotment
Deepak Nitrite Limited (DNL) has disclosed a significant capital infusion into its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL). The company announced on August 26, 2026, that DCTL has issued and allotted a total of 1,75,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹100 each.
Key Allotments Detail
Under this arrangement, DCTL allotted 95,00,000 OCRPS, aggregating to ₹95 crore, to Deepak Phenolics Limited (DPL), another wholly-owned subsidiary of DNL. Additionally, 80,00,000 OCRPS, totaling ₹80 crore, were allotted to Deepak Nitrite Limited itself. Both transactions were conducted at par, meaning each share was valued at its face value of ₹100, and are considered to be on an “arms length” basis.
Purpose of Funds and Business Continuity
The primary objective behind this infusion of funds into DCTL is to bolster its capital base. This will enable DCTL to effectively manage project expenses and cover general corporate purposes. The announcement also confirms that DCTL’s business operations, which include plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation, are not outside the main line of business of the listed entity, Deepak Nitrite Limited.
DCTL’s Financial Snapshot
As of the latest disclosure, Deepak Chem Tech Limited (DCTL) had a paid-up capital of ₹2744.5 crore prior to this allotment, comprising Equity Shares and Preference Shares. The company’s turnover for the Financial Year 2025-26 was reported at ₹172.23 crore. DCTL is currently operating in India, with projects across various sites in Gujarat.
Source: BSE
