Deepak Nitrite Limited Deepak Nitrite and its wholly owned subsidiary Deepak Phenolics Limited have jointly invested ₹175 crore in another subsidiary, Deepak Chem Tech Limited. The investment was executed through the allotment of Optionally Convertible Redeemable Preference Shares (OCRPS) on August 26, 2026.

The transaction involves two distinct allotments to strengthen the capital base of Deepak Chem Tech Limited, which operates plants for fluorination, nitric acid, nitration, and hydrogenation. Deepak Phenolics Limited acquired 95 lakh OCRPS at a face value of ₹100 each, aggregating to ₹95 crore. Simultaneously, Deepak Nitrite Limited allotted 80 lakh OCRPS at par, totaling ₹80 crore. Both transactions were conducted at an arms-length basis.

Transaction Details

The OCRPS carry a coupon rate of 9%. The consideration was paid in cash through normal banking channels. This infusion is intended to support Deepak Chem Tech Limited in meeting project expenses across various sites in Gujarat and for general corporate purposes. No governmental or regulatory approvals were required for this acquisition.

Subsidiary Financial Context

Deepak Chem Tech Limited reported a turnover of ₹172.23 crore for FY26, a significant increase from ₹9.43 crore in FY25 and ₹0.86 crore in FY24. Prior to this allotment, the subsidiary’s paid-up capital stood at ₹2,744.5 crore, comprising ₹499.50 crore in equity shares and ₹2,245 crore in preference shares.

What the Numbers Show

The turnover growth trajectory indicates rapid operational scaling. Revenue expanded from less than ₹1 crore in FY24 to over ₹172 crore in FY26. This three-year progression suggests that the recent ₹175 crore capital infusion is likely aligned with supporting this accelerated expansion phase rather than initial setup costs, given the subsidiary already has substantial existing paid-up capital.

Deepak Nitrite disclosed that its wholly owned subsidiary, Deepak Chem Tech Limited, settled a regulatory violation with the Gujarat government on August 25, 2026. The settlement resolves a contravention of factory rules without material financial impact on the listed entity.

The Settlement Officer, Chief Inspector cum facilitator for factories in Ahmedabad, passed the order under Section 114 of the Occupational Safety, Health and Working Condition Code, 2020. The payment addresses a specific breach of Rule 102 of the Gujarat Factories Rules, 1963.

Settlement Details

Deepak Nitrite filed this disclosure pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The filing references Para-A-20 of Part A of Schedule III and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Financial Impact Assessment

The company explicitly stated that the settlement will have no material financial impact beyond the ₹3,00,000 payment mentioned above. There are no additional penalties or operational restrictions noted in the disclosure.

This regulatory action affects only the subsidiary level and does not indicate broader compliance issues across the group’s manufacturing facilities.