Deepak Nitrite Limited has informed the Exchange about General Updates
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Deepak Nitrite Limited has informed the exchange that its wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), has allotted 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at face value of ₹100 each. Deepak Phenolics Limited (another wholly owned subsidiary) was allotted ₹110 Crores worth of OCRPS (1.10 crore shares), while Deepak Nitrite Limited itself was allotted ₹25 Crores worth (25 lakh shares), aggregating to a total infusion of ₹135 Crores. DCTL operates plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation in Gujarat and had a turnover of ₹9.43 Crores in FY25. The funds will be used to strengthen DCTL's capital base and support project and general corporate expenses. The transaction was done on an arms-length basis at par value, with cash routed through normal banking channels, and no regulatory approvals were required.
This is an internal restructuring/capital infusion within the Deepak Nitrite group and does not change the parent's 100% control over DCTL. It signals continued investment in DCTL's chemical project pipeline, though near-term impact on listed entity shareholders is neutral as the subsidiary is currently loss-making at the revenue level (₹9.43 Cr FY25 turnover vs. significant capital base).