Deepak Nitrite Subsidiary Deepak Chem Tech Raises ₹100 Crores Through Preference Share Allotment
Deepak Chem Tech Limited has allotted 1,00,00,000 preference shares worth ₹100 crores to Deepak Phenolics Limited on February 27, 2026. The 9% OCRPS were issued at par value of ₹100 each to strengthen DCTL's capital base for project expenses and corporate purposes. DCTL operates a fluorination plant in Gujarat and reported turnover of ₹9.43 crores in FY 2024-25, showing significant growth from ₹0.86 crores in the previous year.

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Deepak Nitrite Limited has announced a significant intra-group investment transaction involving its wholly owned subsidiaries. Deepak Chem Tech Limited (DCTL) has successfully allotted preference shares worth ₹100 crores to Deepak Phenolics Limited (DPL) on February 27, 2026, as disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Transaction Details
The investment involves the allotment of 1,00,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) by DCTL to DPL. Each preference share carries a face value of ₹100 and has been issued at par value, resulting in a total transaction value of ₹100.00 crores.
| Parameter: | Details |
|---|---|
| Number of Shares: | 1,00,00,000 OCRPS |
| Face Value per Share: | ₹100 |
| Issue Price: | ₹100 (at par) |
| Total Transaction Value: | ₹100.00 crores |
| Allotment Date: | February 27, 2026 |
| Nature of Consideration: | Cash via banking channel |
Company Profile and Operations
Deetak Chem Tech Limited operates as a wholly owned subsidiary of Deepak Nitrite Limited in the chemical industry. The company currently runs a state-of-the-art fluorination plant and has been actively pursuing projects across various sites in Gujarat. DCTL was incorporated on October 9, 2020, and has shown significant growth in its operations.
Financial Performance
| Financial Year: | Turnover |
|---|---|
| FY 2024-25: | ₹9.43 crores |
| FY 2023-24: | ₹0.86 crores |
| FY 2022-23: | Not Available |
Capital Structure and Shareholding
Prior to this allotment, DCTL maintained a paid-up capital of ₹1999.50 crores, comprising ₹499.50 crores in equity shares and ₹1500 crores in preference shares. Following the current transaction, Deepak Nitrite Limited continues to hold 100% of the equity share capital of DCTL, while together with DPL, it maintains indirect control of 100% of the preference share capital.
Strategic Objectives
The primary objective of this fund infusion is to strengthen DCTL's capital base and provide financial support for:
- Project expenses across various Gujarat sites
- General corporate purposes
- Expansion of fluorination plant operations
- Support for ongoing chemical industry projects
Regulatory Compliance
The transaction qualifies as a Related Party Transaction (RPT) since both DCTL and DPL are wholly owned subsidiaries of Deepak Nitrite Limited. However, the company has confirmed that the transaction has been conducted on an "arms length" basis. No governmental or regulatory approvals were required for this investment, and the allotment was completed on the same day of announcement.
This strategic investment demonstrates the company's commitment to strengthening its subsidiary operations and expanding capabilities in the chemical sector, particularly in fluorination technology and related projects across Gujarat.
Historical Stock Returns for Deepak Nitrite
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.83% | -3.60% | +1.09% | -14.26% | -16.12% | +15.49% |


































