Deepak Phenolics Invests in Deepak Chem Tech Limited with Allocation of Preference Shares
Deepak Phenolics Limited (DPL), a wholly owned subsidiary of Deepak Nitrite Limited, has invested in Deepak Chem Tech Limited (DCTL), another wholly owned subsidiary of the company. The investment involves the allotment of 1,20,00,000 9% Optionally Convertible Redeemable Preference Shares ('OCRPS') to DPL.The transaction aggregates to ₹120.00 Crores. The OCRPS have a face value of ₹100 each, and the shares were allotted at par through a cash transfer using a normal banking channel. This investment is aimed at strengthening the capital base of DCTL and supporting its operational project expenses and general corporate purposes.
DCTL is currently engaged in the chemical industry, operating plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation in Gujarat. The company has been pursuing various projects across different sites within the state.
The financial and operational details regarding Deepak Chem Tech Limited (DCTL) are summarized below:
| Particulars | Details |
|---|---|
| Entity Type | Wholly owned subsidiary of Deepak Nitrite Limited |
| Industry | Chemical Industry |
| Incorporation Date | October 9, 2020 |
| FY 2025-26 Turnover | Less than ₹172.23 Crores |
| Financial History (Turnover) | FY 2024-25: ₹9.43 Crores; FY 2023-24: ₹0.86 Crores |
The transaction maintains the existing control structure of DCTL, which includes:
- Deepak Nitrite Limited holds 100% of the Equity Share Capital of DCTL.
- Along with Deepak Phenolics Limited (DPL), Deepak Nitrite Limited holds indirectly 100% of the Preference Share Capital of DCTL.
The investment is described as being executed on an arms length basis, and there are no governmental or regulatory approvals required for this transaction.
DEEPAKNTR Stock Price Movement
Deepak Nitrite Limited shares today slipped by 1.84%, settling at ₹1651.3 as the market closed for the day. The stock traded a volume of 75,838 shares during the session.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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