Deepak Nitrite Subsidiary Issues ₹68 Cr OCRPS to Deepak Phenolics
Deepak Nitrite Limited's subsidiary, Deepak Chem Tech Limited, has issued ₹68 crore in 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to another subsidiary, Deepak Phenolics Limited. The funds will strengthen DCTL's capital base and support project expenses. DCTL operates a fluorination plant and reported ₹9.43 crore turnover in FY25.
The transaction is an internal reallocation of funds between wholly-owned subsidiaries. While it aims to strengthen the capital base of one subsidiary, it does not represent new external funding, a significant acquisition, or a major operational change that would materially impact the consolidated financial performance or stock price.
The announcement details an intra-company financial transaction (issuance of preference shares between subsidiaries) which is a routine corporate action and does not inherently indicate a positive or negative development for the company's overall financial performance or market position.
Deepak Nitrite Limited announced that its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted 68,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹100 each, aggregating to ₹68 crore, to another wholly-owned subsidiary, Deepak Phenolics Limited (DPL).
DCTL is an Indian company and a wholly-owned subsidiary of Deepak Nitrite Limited. Prior to this allotment, DCTL had a paid-up capital of ₹1851.50 crore, comprising ₹499.50 crore of Equity Shares and ₹1352 crore of Preference Shares. DCTL operates a state-of-the-art Fluorination plant and is pursuing projects across various sites in Gujarat. Its turnover for FY 2024-25 was ₹9.43 crore.
The transaction is between related parties, as both DCTL and DPL are wholly-owned subsidiaries. The OCRPS were allotted at par, meaning at ₹100 each, for a total of ₹68 crore. This infusion of funds is intended to strengthen DCTL's capital base, support project expenses, and for general corporate purposes. The business of DCTL is within the main line of business of the listed entity. No governmental or regulatory approvals are required for this investment.
Deepak Nitrite Limited continues to hold 100% of the Equity Share Capital of DCTL. Post-allotment, along with DPL, it indirectly holds 100% of the Preference Share Capital of DCTL.
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Deepak Nitrite Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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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.