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.

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.