SCM Commercial Private Limited has announced its intention to acquire 74,00,000 equity shares of Deepak Fertilisers And Petrochemicals Corporation Limited , representing 5.86% of the target company's share capital. The acquisition will be executed through an inter-se transfer from fellow promoter group entity Robust Marketing Services Private Limited.

Transaction Details

The proposed share transfer is structured as follows:

Regulatory Compliance

SCM Commercial Private Limited filed the initial intimation under Regulation 10(5) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 on March 23, 2026. The company subsequently submitted a correction notice on March 31, 2026, addressing a typographical error in the covering letter that incorrectly referenced Regulation 10(1)(a)(ii) instead of the correct Regulation 10(1)(a)(iii).

The acquisition price will not exceed the limits stipulated under proviso (i) to Regulation 10(1)(a) of SEBI (SAST) Regulations. The volume weighted average market price for 60 trading days preceding the notice was 1075.27, and the acquirer has declared that the acquisition price will not be higher by more than 25% of this computed price.

Impact on Shareholding Structure

The transaction will result in significant changes to the promoter group's shareholding pattern:

Corporate Information

SCM Commercial Private Limited, incorporated in 2024 with CIN U46900PN2024PTC231705, is registered at Sai Hira, S No.93, CS No. 1130, Mundhwa, Pune, 411036. The company is part of the promoter group of Deepak Fertilisers And Petrochemicals Corporation Limited and the transaction represents an internal restructuring among qualifying persons within the promoter group.

The intimation was signed by Ashok Prafulchandra Shah, Director (DIN: 00128204), and Company Secretary Jill Shah (ACS-64360) handled the regulatory filings. The company confirmed that all conditions specified under regulation 10(1)(a) regarding exemptions have been duly complied with, and both transferor and transferee will comply with applicable disclosure requirements under Chapter V of the SEBI SAST Regulations.

Deepak Fertilisers & Petrochemicals Corporation Limited has received a credit rating update from ICRA Limited, with the rating agency reaffirming the company's AA- long-term rating while revising the outlook from Positive to Watch with Developing Implications. The short-term A1+ rating has been withdrawn.

Rating Action Summary

The rating revision affects the company's total rated amount of Rs. 2,186.00 crore. The key changes include:

The detailed instrument-wise breakdown shows the fund-based term loan amount increased from Rs. 1,058.00 crore to Rs. 2,186.00 crore, while short-term non-fund based limits of Rs. 975.00 crore and unallocated limits of Rs. 3.00 crore have been withdrawn.

Impact of West Asia Conflict

The rating watch placement stems from the ongoing West Asia conflict that commenced on February 28, 2026, which has severely disrupted natural gas supplies and caused significant price volatility. The conflict has impacted global supply of critical commodities including ammonia, sulphur, and natural gas due to transit constraints across the Strait of Hormuz.

The Deepak Group faces exposure to short-term gas supply tightness and price volatility, which may constrain ammonia production under Performance Chemiserve Limited. Ammonia serves as a key input for manufacturing nitric acid, technical ammonium nitrate (TAN), and phosphatic fertilisers.

Future Outlook and Mitigation Measures

ICRA expects relief through the Equinor gas contract, scheduled to commence from May 2026, which will substantially meet PCL's entire gas requirement. The surplus volume will be available for sale through Deepak GlobalChem Pte Ltd, potentially easing supply-related pressures.

The upcoming TAN and nitric acid projects are expected to be operationalised by the end of Q1 FY2027, further strengthening the company's market position. Key project details include:

Financial Performance and Liquidity

The company's consolidated financial metrics show healthy performance trends:

ICRA notes that the liquidity position remains adequate, supported by expected healthy cash flow from operations of Rs. 650-700 crore in FY2026, rising to Rs. 1,500-1,700 crore in FY2027.

Key Strengths and Challenges

The rating continues to factor in the company's diversified product portfolio and strong market position in mining chemicals and industrial chemicals. However, challenges include vulnerability to commodity price cyclicality, regulatory risks in the fertiliser business, and project execution risks associated with large debt-funded capex plans.

ICRA will continue monitoring developments regarding gas supply availability and the timely commencement of the Equinor contract, which remain key factors for the rating outlook resolution.