Deepak Nitrite Ltd. Issues Preference Shares to Subsidiaries
Deepak Nitrite Limited announced on March 26, 2026, that its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted preference shares to Deepak Phenolics Limited (DPL) and the company itself.DCTL issued 11,000,000 (1.1 million) 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹10 each, totaling ₹110 crore, to DPL. Additionally, 2,500,000 (2.5 million) 9% OCRPS with a face value of ₹100 each, aggregating to ₹25 crore, were issued to Deepak Nitrite Limited.
According to information provided, DCTL’s present paid-up capital before the allotment was ₹2099.50 crore, comprising ₹499.50 crore in equity shares and ₹1600 crore in preference shares. DCTL operates plants for fluorination, nitric acid, nitration, and hydrogenation, and is pursuing projects across Gujarat. The company reported a turnover of ₹9.43 crore for fiscal year 2024-25.
The infusion of funds into DCTL by DPL and Deepak Nitrite Limited is intended to strengthen its capital base and support project expenses and general corporate purposes. The transaction with DPL was conducted at par, and is considered an arms-length transaction, as both DCTL and DPL are wholly-owned subsidiaries of Deepak Nitrite Limited.
No governmental or regulatory approvals were required for the investment.
| Particulars | Details |
|---|---|
| Name of Target Entity | Deepak Chem Tech Limited ('DCTL') |
| Paid-up Capital (Prior to Allotment) | ₹2099.50 crore |
| Turnover (FY 2024-25) | ₹9.43 crore |
| OCRPS Issued to DPL | 11,000,000 shares, totaling ₹110 crore |
| OCRPS Issued to DNL | 2,500,000 shares, totaling ₹25 crore |
| Consideration | Cash |
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