Deepak Nitrite 's wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), has successfully raised ₹32 crore through the issuance of preference shares. This strategic move aims to bolster DCTL's capital base and support its ongoing project expenses.

Key Details of the Transaction

Impact on Shareholding Structure

Despite this transaction, Deepak Nitrite maintains its 100% equity shareholding in DCTL. The preference share capital is now indirectly held 100% by Deepak Nitrite along with DPL, another wholly owned subsidiary.

About Deepak Chem Tech Limited

DCTL, incorporated on October 9, 2020, operates in the chemical industry. The company currently runs a state-of-the-art fluorination plant and is actively pursuing projects across various sites in Gujarat. For the fiscal year 2024-25, DCTL reported a turnover of ₹9.43 crore.

Financial Snapshot of DCTL

Regulatory Compliance

The transaction has been executed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As both DCTL and DPL are wholly owned subsidiaries of Deepak Nitrite, this transaction is considered a related party transaction but has been conducted on an arm's length basis.

This capital infusion is expected to strengthen DCTL's financial position, potentially enabling it to expand its operations and pursue new projects in the chemical industry sector.

Deepak Nitrite Limited, a leading player in the chemical industry, has taken a significant step towards bolstering its research and innovation capabilities. The company recently inaugurated a cutting-edge Research and Development (R&D) centre in Savli, Vadodara, marking a new era in its commitment to pioneering advancements in chemistry.

Key Features of the New R&D Centre

The new facility, named Deepak Research & Development Centre (DRDC) 2.0, boasts several impressive features:

Strategic Importance

The establishment of this state-of-the-art R&D centre underscores Deepak Nitrite's commitment to innovation and sustainable growth. The facility is designed to accelerate the company's research initiatives, enabling faster innovation cycles and larger-scale experimentation.

Mr. Deepak Mehta, Chairman and Managing Director of Deepak Nitrite, emphasized the strategic importance of the new centre, stating, "The Research and Technology Center serve as an incubation hub for innovation and knowledge creation. It reflects our longstanding commitment to investing in core chemistries and collaboratively furthering the development of sustainable processes and new products."

Future Outlook

The new R&D centre is expected to play a crucial role in Deepak Nitrite's future growth and innovation strategy. Mr. Maulik Mehta, CEO of Deepak Nitrite, highlighted the centre's potential, saying, "The new center is not just a laboratory- it is an invitation to develop and innovate. DRDC 2.0 is open for business."

This significant investment in research and development capabilities positions Deepak Nitrite to enhance its competitive edge in the chemical industry, potentially leading to new product developments and improved processes that could benefit various sectors, including dyes and pigments, agrochemicals, pharmaceuticals, and petrochemicals.

As Deepak Nitrite continues to expand its R&D capabilities and embrace digital transformation, the new centre is poised to play a pivotal role in shaping the company's future and contributing to India's vision of becoming a global hub for specialty chemicals.