Deepak Nitrite Subsidiary Invests ₹120 Crore in Deepak Chem Tech
Deepak Nitrite's subsidiary, Deepak Chem Tech Limited, has issued and allotted ₹120 Crores in 9% Optionally Convertible Redeemable Preference Shares to its parent subsidiary, Deepak Phenolics Limited. The funds will strengthen DCTL's capital base and support project expenses.
The investment of ₹120 Crores is significant and aims to bolster the subsidiary's financial standing and operational capacity, indicating a medium-term positive impact on the company's overall strategy.
The investment strengthens a subsidiary's capital base and supports its projects, which is a positive development for the company's growth.
Deepak Nitrite Limited (DNL) announced that its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted 1,20,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹100 each, aggregating to ₹120 Crores. This investment was made by another wholly-owned subsidiary, Deepak Phenolics Limited (DPL).
The infusion of funds into DCTL by DPL is intended to strengthen DCTL's capital base and support its project expenses and general corporate purposes. DCTL's business activities, including fluorination, nitric acid, nitration, and hydrogenation, are in line with Deepak Nitrite's main business.
DCTL, incorporated on October 9, 2020, had a turnover of ₹172.23 Crores in FY 2025-26, ₹9.43 Crores in FY 2024-25, and ₹0.86 Crores in FY 2023-24. The transaction, which involves the allotment of OCRPS at par, is considered an arms-length transaction as both DCTL and DPL are wholly-owned subsidiaries of Deepak Nitrite Limited. No governmental or regulatory approvals are required for this investment, and the allotment was completed on July 28, 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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