Deepak Nitrite Limited announced that its material wholly owned subsidiary, Deepak Chem Tech Limited, has commissioned manufacturing operations for a new Chlorination and Specialty chemical plant. The facility, located at Dahej in Bharuch district, Gujarat, commenced operations on September 29, 2026.

The total capital expenditure incurred for the project stood at approximately ₹300 crore as of the commencement of manufacturing operations. The commissioning includes the main plant along with associated utilities and infrastructure.

Project Details

The new facility represents a significant capacity addition for the group's specialty chemicals segment. The key details of the commissioning are outlined below:

Regulatory Disclosure

The company filed this intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made to BSE Limited, highlighting the operational readiness of the new asset which is expected to support future revenue streams for the subsidiary.

Deepak Nitrite Limited announced that its wholly owned subsidiary, Deepak Phenolics Limited (DPL), has acquired ₹80 crore worth of 9% Optionally Convertible Redeemable Preference Shares (OCRPS) in Deepak Chem Tech Limited (DCTL).

The transaction involves the allotment of 80,00,000 OCRPS with a face value of ₹100 each to DPL. This investment is aimed at strengthening the capital base of DCTL and supporting its project expenses and general corporate purposes. The allotment was completed on September 29, 2026.

Transaction Structure and Terms

The acquisition falls under related party transactions as both DPL and DCTL are wholly owned subsidiaries of Deepak Nitrite. The shares were allotted at par value, ensuring the transaction is conducted on an arms-length basis. The consideration was settled via cash transfer through normal banking channels.

Operational Context of Target Entity

DCTL operates in the chemical industry, specifically managing plants for Fluorination, Nitric Acid, Nitration, and Hydrogenation. The entity has been pursuing various projects across sites in Gujarat. Prior to this allotment, DCTL had a paid-up capital of ₹2,919.50 crore, comprising ₹499.50 crore in equity shares and ₹2,420 crore in preference shares.

The company reported a turnover of ₹172.23 crore for FY26, a significant jump from ₹9.43 crore in FY25 and ₹0.86 crore in FY24. Despite this growth, the business remains within the main line of operations of the listed parent entity.

What the Numbers Show

The infusion of ₹80 crore into DCTL represents a strategic capital allocation within the group's chemical vertical. While DCTL’s turnover grew exponentially from FY24 to FY26, its paid-up capital structure was already substantial at ₹2,919.50 crore. The new ₹80 crore injection, while relatively small compared to the existing capital base, is specifically earmarked for project expenses, suggesting ongoing capacity expansion or working capital needs for its Fluorination and Nitration facilities rather than a rescue operation. The retention of 100% indirect equity control by Deepak Nitrite through both subsidiaries ensures no dilution of ownership at the group level.