Deepak Nitrite Limited (DNL) announced an investment totaling ₹135 Crores into its wholly owned subsidiary, Deepak Chem Tech Limited (DCTL). The investment was made through the issuance of 9% Optionally Convertible Redeemable Preference Shares (OCRPS) by DCTL to DNL and its other subsidiary, Deepak Phenolics Limited (DPL). The infusion aims to strengthen DCTL’s capital base and support its ongoing project expenses.
Details of Intra-Group Investment
On March 26, 2026, Deepak Nitrite Limited disclosed the completion of a strategic investment within its group structure. The investment involved Deepak Chem Tech Limited (DCTL), a wholly owned subsidiary of DNL, issuing 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to its parent and sister concerns.
- Deepak Phenolics Limited (DPL), another subsidiary, subscribed to 1,10,00,000 OCRPS, aggregating to ₹110 Crores (Face Value ₹100 each).
- Deepak Nitrite Limited (DNL), the Company, subscribed to 25,00,000 OCRPS, aggregating to ₹25 Crores (Face Value ₹100 each).
The total investment across both parties amounts to ₹135 Crores. The acquisition was completed by transfer of money via normal banking channels, executed at par value.
Target Entity Overview (DCTL)
Deepak Chem Tech Limited (‘DCTL’) is a company incorporated in India and operates as a wholly owned subsidiary of DNL. DCTL is engaged in the Chemical Industry, currently operating plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation, with ongoing projects across Gujarat. DCTL was incorporated on October 9, 2020.
Recent Financial Performance
The turnover of DCTL for the recent financial years shows growth:
- FY 2024-25: ₹9.43 Crores
- FY 2023-24: ₹0.86 Crores
- FY 2022-23: NA
Rationale and Related Party Status
The primary objective of this infusion of funds into DCTL by DPL and DNL is to strengthen the capital base of DCTL and support it in meeting project expenses and general corporate purposes. The business activities of DCTL are considered within the main line of business of the listed entity, Deepak Nitrite Limited.
Given that DCTL and DPL are both wholly owned subsidiaries of DNL, the transactions are classified as Related Party Transactions (RPTs) under relevant accounting standards. Both allotments were conducted on an “arms length” basis.
Shareholding Implications
Prior to this issuance, Deepak Nitrite Limited held 100% of Equity Share Capital in DCTL. Following the allotment of Preference Shares, DNL continues to hold 100% of the Equity Share Capital of DCTL. Furthermore, DNL, along with DPL, indirectly continues to hold 100% of the Preference Share Capital of DCTL.
Source: BSE
