Deep Industries Limited has informed the Exchange regarding Board meeting held on Jun 30, 2025.
DEEPINDS · price
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Deep Industries Limited's board, at its June 30, 2025 meeting, 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 had total assets of about Rs. 215 crore but minimal revenue (Rs. 38.5 lakh) in FY25, compared to DIL's total assets of Rs. 1,820 crore and revenue of Rs. 515 crore. Since KECL is a wholly owned subsidiary, no new shares will be issued and there will be no change in the shareholding pattern of DIL. The rationale is backward integration — KECL makes chemicals and hydrocarbon fluids that DIL uses in its oil and gas support services — along with cost savings from removing the holding-subsidiary structure. The scheme still requires approval from NCLT and other regulators before it can take effect.
This is a minor internal restructuring with no dilution for shareholders, as no new shares are being issued. It is unlikely to move the stock price materially in the short term, but could support margins over time if backward integration delivers the expected cost efficiencies.