Deepak Nitrite Limited announced that its wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has invested ₹100.00 Crores into another subsidiary, Deepak Chem Tech Limited (DCTL). The investment was made via the allotment of 1,00,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at par value. This infusion aims to strengthen DCTL’s capital base and support ongoing project expenditures in the Chemical Industry.
Strategic Internal Investment Confirmed
Deepak Nitrite Limited has formally disclosed a significant internal capital infusion transaction between two of its wholly-owned subsidiaries, effective February 27, 2026. Deepak Chem Tech Limited (DCTL), which specializes in the Chemical Industry, issued and allotted shares to Deepak Phenolics Limited (DPL).
Terms of the Transaction
The total investment amounted to ₹100.00 Crores. This was achieved through the allotment of 1,00,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS), each having a face value of ₹100. The allotment was made at par, ensuring the transaction adheres to an “arms length” basis between the related parties. The consideration was paid in cash via normal banking channels.
Target Entity Profile (DCTL)
DCTL, incorporated on October 9, 2020, is currently operating a state-of-the-art Fluorination plant and is actively pursuing new projects across various sites in Gujarat. Prior to this allotment, DCTL’s paid-up capital stood at ₹1,999.50 Crores (comprising Equity and Preference Shares). The reported turnover for FY 2024-25 was ₹9.43 Crores, up from ₹0.86 Crores in FY 2023-24.
Objects and Shareholding Impact
The primary objective of this fund infusion by DPL into DCTL is to strengthen the capital base of DCTL and provide support for carrying out necessary project expenses and general corporate purposes. Crucially, the business conducted by DCTL falls within the main line of business of the listed entity. Post-allotment, Deepak Nitrite Limited continues to hold indirectly 100% of the Preference Share Capital of DCTL.
No governmental or regulatory approvals were required for this specific investment.
Source: BSE
