DEEPAKNTRNSEDeepak Nitrite Limited· Chemicals - OrganicMediumNeutral
Announced Wed, 7 May · 18:23 IST

Deepak Nitrite Limited has informed the Exchange about General Updates

Fund Raising View source PDF

DEEPAKNTR · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Deepak Nitrite's wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted 68,00,000 Optionally Convertible Redeemable Preference Shares (OCRPS) at 9% coupon with a face value of Rs. 100 each, aggregating to Rs. 68 crores. These shares were allotted to another wholly owned subsidiary, Deepak Phenotics Limited (DPL), at par on an arm's length basis. The purpose is to strengthen DCTL's capital base and support its ongoing project expenses. DCTL, incorporated in October 2020, operates a fluorination plant in Gujarat since March 2024 and reported a turnover of just Rs. 0.86 crores in FY24, indicating it is in an early growth stage. No change in ultimate shareholding occurs since both DCTL and DPL remain wholly owned within the Deepak Nitrite group.

Likely market impact

This is an internal restructuring among wholly owned subsidiaries, so there is no dilution for Deepak Nitrite shareholders and no external capital raise. It signals the company is committing fresh capital into DCTL's upcoming projects, which could benefit the group in the long term but has no immediate impact on the listed entity's financials or stock price.