DEEPAKNTRNSEDeepak Nitrite Limited· Chemicals - OrganicMediumNeutral
Announced Thu, 31 Jul · 17:44 IST

Deepak Nitrite Limited has informed the Exchange regarding 'Investment in Deepak Chem Tech Limited by Deepak Nitrite Limited'.

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Deepak Nitrite Limited has invested ₹50 Crores in its wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), by subscribing to 50 lakh 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at face value of ₹100 each. The funds will be used to strengthen DCTL's capital base and support project expenses. DCTL, which operates a Fluorination plant in Gujarat since March 2024, reported a turnover of ₹9.43 Crores in FY25 (up from ₹0.86 Crores in FY24). The transaction is on an arms-length basis, and DNL continues to hold 100% of DCTL's equity share capital post-allotment. No governmental or regulatory approvals were required for this investment.

Likely market impact

This is an internal capital infusion into a fully-owned subsidiary, so there is no change in ownership or consolidation impact. It signals continued investment in DCTL's growth projects, particularly the Fluorination business, which could drive future revenue for the Deepak Nitrite group. Minimal direct impact on the parent company's stock price expected in the short term.