Deepak Chem Tech Limited Issues Preference Shares to DPL for Capital Infusion
Deepak Chem Tech Limited (DCTL), a wholly-owned subsidiary of Deepak Nitrite Limited, has issued 12 million 9% Opportunity Convertible Redeemable Preference Shares (OCRPS) to Deepak Phenolics Limited (DPL), another wholly-owned subsidiary of the Company. This transaction aims to strengthen DCTL's capital base and support its ongoing project expenses and general corporate purpose.The shares were issued at par, with a face value of ₹100 each, aggregating to ₹120.00 Crores. The infusion of funds falls under the chemical industry segment.
DCTL, which operates plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation, is actively pursuing projects across various sites in Gujarat. DCTL's existing paid-up capital stood at ₹2504.50 Crores prior to this allotment, comprising ₹499.50 Crores of Equity Shares and ₹2,005 Crores of Preference Shares.
The transaction between the two subsidiaries is classified as an arm’s length deal, with both entities being wholly owned by Deepak Nitrite Limited. Following the issuance, DCTL remains 100% owned in its Equity Share Capital by Deepak Nitrite Limited, while along with DPL, they indirectly hold 100% of the Preference Share Capital of DCTL.
Key details regarding DCTL and the transaction are summarized below:
| Particulars | Details |
|---|---|
| Target Entity | Deepak Chem Tech Limited (DCTL) |
| Industry | Chemical industry |
| Financing Transaction | Issuance of 12,000,000 OCRPS at par to DPL |
| Transaction Value | ₹120.00 Crores |
| Primary Objective | Strengthening capital base and supporting project expenses |
The operational profile of the company in recent years includes:
| Financial Year | Turnover |
|---|---|
| FY 2025-26 | < ₹172.23 Crores |
| FY 2024-25 | ₹9.43 Crores |
| FY 2023-24 | ₹0.86 Crores |
DCTL is currently operating in India, with its operations focused on the chemical industry segment.
DEEPAKNTR Stock Price Movement
Today, Deepak Nitrite Limited shares climbed to settle at ₹1644 after the market close, advancing 1.65% in trading. The stock saw movement between an intraday low of ₹1627 and a high of ₹1669.3, with a volume of 153,220 shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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