Deep Industries Limited has informed the Exchange about Amalgamation/Merger
DEEPINDS · price
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Awaiting price reaction for this filing.
Deep Industries Limited's Board, on June 30, 2025, approved a scheme of amalgamation to merge its wholly owned subsidiary Kandla Energy & Chemicals Limited (KECL) into itself under Sections 230-232 of the Companies Act, 2013. KECL, which manufactures chemicals and hydrocarbon fluids, reported total assets of Rs. 21,505.14 lakhs and income of just Rs. 38.50 lakhs for FY25 — very small relative to DIL's total assets of Rs. 1,82,002.22 lakhs and income of Rs. 51,538.36 lakhs. Because KECL is fully owned by DIL, no new shares will be issued and there is no share exchange ratio. The scheme is now subject to NCLT and other statutory approvals. The stated rationale is backward integration (chemicals used in DIL's oil & gas services), simplified corporate structure, reduced compliance costs, and resource optimisation.
No share dilution for existing shareholders since no new equity is being issued. The merger is expected to deliver modest operational synergies through backward integration and cost savings, and is likely to be viewed as neutral to mildly positive by the market given the small relative size of KECL.