Deepak Chem Tech Allots ₹37 Cr Preference Shares to Deepak Phenotics
Deepak Nitrite's subsidiary, Deepak Chem Tech, allotted ₹37 Cr in 9% Optionally Convertible Redeemable Preference Shares to another subsidiary, Deepak Phenotics, to strengthen capital for projects.
While the ₹37 Crores funding is significant for the subsidiary Deepak Chem Tech Limited, whose FY25 turnover was ₹9.43 Crores, it represents an internal restructuring of funds within the Deepak Nitrite group, resulting in a medium impact on the overall listed entity.
The allotment of preference shares to a wholly-owned subsidiary strengthens its capital base, enabling it to pursue projects and support general corporate purposes, which is a positive step for business growth.
* Deepak Chem Tech Limited (DCTL), a wholly-owned subsidiary of Deepak Nitrite Limited, has issued and allotted 37,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS), each with a face value of ₹100, aggregating to ₹37 Crores. * These shares were allotted to Deepak Phenotics Limited (DPL), another wholly-owned subsidiary of the Company, on October 3, 2025. * The transaction is classified as a Related Party Transaction (RPT) and was executed on an "arms length" basis. * The main purpose of this fund infusion is to strengthen DCTL's capital base, support its project expenses, and cater to general corporate requirements. * DCTL operates a state-of-the-art Fluorination plant and is actively pursuing projects in Gujarat, aligning with the Chemical Industry, which is the main line of business for Deepak Nitrite Limited. * DCTL's turnover for the financial year 2024-25 was ₹9.43 Crores. * No governmental or regulatory approvals were required for this investment. * Following the allotment, Deepak Nitrite Limited maintains 100% ownership of DCTL's Equity Share Capital, and along with DPL, indirectly holds 100% of DCTL's Preference Share Capital.
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Deepak Nitrite Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Deepak Nitrite Limited. Read the original for the full detail.