Deepak Nitrite Infuses ₹175 Crore into Subsidiary Deepak Chem Tech
Deepak Nitrite Limited's subsidiaries, Deepak Phenolics Limited and Deepak Nitrite Limited, have invested a total of ₹175 crore in wholly-owned subsidiary Deepak Chem Tech Limited. The investment comprises ₹95 crore by DPL and ₹80 crore by DNL through 9% Optionally Convertible Redeemable Preference Shares. Funds will strengthen DCTL's capital base.
The investment of ₹175 crore is significant for the subsidiary's operations and future projects, indicating strategic financial support. While not a core business line expansion, it's a substantial internal financial maneuver.
The investment strengthens the capital base of a subsidiary, which is a positive development for the company's growth and project execution.
Deepak Nitrite Limited (DNL) announced an investment of ₹175 crore into its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL). This infusion was made through two of DNL's subsidiaries: Deepak Phenolics Limited (DPL) and DNL itself. DPL has subscribed to 95,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) of DCTL, with a face value of ₹100 each, aggregating to ₹95 crore. Additionally, DNL has subscribed to 80,00,000 9% OCRPS of DCTL, also with a face value of ₹100 each, aggregating to ₹80 crore.
The primary objective of this fund infusion is to strengthen DCTL's capital base and support its project expenses and general corporate purposes. DCTL is involved in fluorination, nitric acid, nitration, and hydrogenation, with ongoing projects across Gujarat. The turnover of DCTL for FY 2025-26 was ₹172.23 crore.
Both DCTL and DPL are wholly-owned subsidiaries of DNL, making them related parties. The transactions were conducted on an "arms length" basis, with the OCRPS being issued at par. This investment does not fall outside the main line of business of Deepak Nitrite Limited, and no governmental or regulatory approvals are required for this transaction. The allotment of these OCRPS was completed on August 26, 2026.
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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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