Deepak Chem Tech Limited (DCTL), a wholly-owned subsidiary of Deepak Nitrite Limited, has issued and allotted 1,76,00,000 (1.76 crore) 9% Optionally Convertible Redeemable Preference Shares (OCRPS) of ₹100 each, aggregating to ₹176.00 Crores, to Deepak Phenotics Limited (DPL), another wholly-owned subsidiary of the Company.
The allotment was completed on 6th June, 2025, with the consideration being cash transferred through normal banking channels.
The primary objective of this fund infusion into DCTL is to strengthen its capital base, support ongoing project expenses, and facilitate the repayment of existing loans.
DCTL, incorporated on 9th October, 2020, currently operates a state-of-the-art Fluorination plant commissioned on 21st March, 2024, and is actively developing various projects across multiple sites in Gujarat. Its business activities are consistent with the main line of business of the listed entity.
Prior to this allotment, DCTL's paid-up capital stood at ₹1199.50 Crores, comprising ₹499.50 Crores in Equity Shares and ₹700 Crores in Preference Shares.
DCTL's turnover for the financial year 2024-25 was ₹9.43 Crores, following a turnover of ₹0.86 Crores in FY 2023-24.
The transaction is classified as a Related Party Transaction, as both DCTL and DPL are wholly-owned subsidiaries of Deepak Nitrite Limited. However, the allotment was made at par (₹100 per share) and conducted on an "arms length" basis.
No governmental or regulatory approvals were required for this investment.
Following the allotment, Deepak Nitrite Limited continues to hold 100% of DCTL's Equity Share Capital, and along with DPL, indirectly maintains 100% of DCTL's Preference Share Capital.