Deepak Nitrite Limited has announced a significant inter-company transaction between its wholly owned subsidiaries on April 30, 2026. The company disclosed that Deepak Chem Tech Limited (DCTL) has issued and allotted 1,50,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) worth ₹150.00 crores to Deepak Phenolics Limited (DPL). The transaction was conducted in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Details

The preference shares were allotted at par value, with each share priced at ₹100. The transaction represents a related party arrangement between two wholly owned subsidiaries of Deepak Nitrite Limited, conducted on an arms-length basis through normal banking channels.

About Deepak Chem Tech Limited

DCTL, incorporated on October 9, 2020, operates specialized chemical manufacturing facilities across Gujarat. The company runs plants for Fluorination, Nitric Acid, Nitration and Hydrogenation processes while pursuing various expansion projects. Prior to this allotment, DCTL maintained a paid-up capital of ₹2234.50 crores, comprising ₹499.50 crores in equity shares and ₹1735 crores in preference shares.

Purpose and Impact

The fund infusion serves multiple strategic objectives for strengthening DCTL's operational capabilities. The primary purposes include:

• Strengthening the capital base of DCTL
• Supporting project expenses across various Gujarat sites
• Meeting general corporate requirements
• Enhancing financial flexibility for ongoing operations

The transaction maintains the existing ownership structure, with Deepak Nitrite Limited continuing to hold 100% equity share capital in DCTL. Combined with DPL, the parent company maintains indirect 100% control over DCTL's preference share capital.

Regulatory Compliance

The allotment required no governmental or regulatory approvals beyond standard disclosure requirements. The transaction falls under related party arrangements as both DCTL and DPL are wholly owned subsidiaries operating within the chemical industry sector. The business activities of DCTL align with Deepak Nitrite Limited's main line of operations, ensuring strategic coherence within the group structure.

Official Disclosure

The transaction was officially communicated to the National Stock Exchange of India Limited on April 30, 2026, under reference DNL/140/NSE/1650/2026. The disclosure confirmed that 1,50,00,000 OCRPS aggregating to ₹150.00 Crores were allotted by DCTL to DPL on the same date. The consideration was paid in cash through normal banking channels, and no governmental or regulatory approvals were required for the investment. The allotment was made at par value of ₹100 per share, maintaining the arms-length nature of the transaction between related parties.

Deepak Nitrite Limited's wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), has announced a strategic partnership with Praxair India, a Linde company, to establish a dedicated HyCO plant for its upcoming polycarbonate manufacturing project. The agreement was disclosed through a press release dated 30th April 2026, marking a significant milestone in the company's polycarbonate project development.

Strategic Partnership Details

The long-term agreement establishes a comprehensive supply arrangement where Praxair India will build, own and operate a dedicated on-site facility at Padariya, Dahej, in Gujarat. This facility will manufacture and supply key feedstocks essential for polycarbonate production, ensuring a reliable and consistent supply of critical raw materials for DCTL's operations.

Project Scope and Benefits

The partnership brings together DCTL's downstream materials platform with Praxair India's expertise in industrial gas infrastructure and operations. The on-site model is designed to support consistent availability and operational efficiency while enabling DCTL to maintain focus on its core expertise. The arrangement establishes supply chain resilience and supports product quality and scalability as the project advances.

According to Mr. Meghav Mehta, ED & CEO of Deepak Chem Tech Limited, "This agreement marks an important step in advancing our polycarbonate project. A long-term arrangement of critical raw material supply through a dedicated on-site solution enhances execution visibility, supports efficient project delivery and creates value for our customers. We are pleased to partner with Praxair India, whose global expertise and wide capabilities align well with the requirements of this project."

Market Applications and Strategic Impact

DCTL's integrated polycarbonate facility is positioned to play a significant role in domestic production of high-performance materials. The project targets several high-growth end-use segments in India, including:

• Automotive applications
• Electrical and electronics sector
• Construction industry
• Consumer applications

The integrated supply arrangement has been structured to support the growing demand in these sectors while ensuring operational efficiency and supply chain reliability. The facility is expected to be commissioned in 2028, aligning with the overall polycarbonate plant development timeline.