Deepak Nitrite has announced the launch of a new nitration and hydrogenation plant in Gujarat, representing a significant expansion of the company's manufacturing capabilities. The chemical manufacturer has outlined substantial capital investment plans to support this new facility.

Investment Details

The company has committed to capital spending of approximately ₹85.00 crores for the new plant development. This investment underscores Deepak Nitrite's strategic focus on expanding its production infrastructure.

Facility Expansion

The new nitration and hydrogenation plant represents a key addition to Deepak Nitrite's manufacturing portfolio. The facility is designed to enhance the company's operational capacity in chemical processing, specifically focusing on nitration and hydrogenation processes that are core to the company's business operations.

Strategic Significance

This plant launch aligns with Deepak Nitrite's expansion strategy in the chemicals sector. The Gujarat location provides strategic advantages for the company's operations, building on the state's established industrial infrastructure and connectivity. The investment in nitration and hydrogenation capabilities positions the company to strengthen its market presence in specialized chemical manufacturing processes.

Deepak Nitrite Limited has achieved partial relief in its ongoing stamp duty dispute, with the Chief Controlling Revenue Authority (CCRA) delivering a favorable ruling on one of two contested orders. The company received the CCRA's decision on January 7, 2026, marking a significant development in a case that has been ongoing since 2017.

CCRA Decision Details

The CCRA passed two orders dated December 31, 2025, addressing the company's appeals against the Deputy Collector's September 2024 rulings. The authority's decision provided mixed results for Deepak Nitrite:

Background of the Dispute

The stamp duty controversy traces back to July 25, 2017, when Deepak Nitrite received a show cause notice for alleged deficiency in stamp duty payment. The dispute centered on Memorandum of entries executed by the company on May 27, 2014, and October 16, 2014, for securing term loan and working capital facilities from lenders.

Despite the company's written and oral representations contesting the demand, the Deputy Collector of the Stamp Duty Valuation Department, Vadodara, disregarded Deepak Nitrite's contentions and passed two adverse orders on September 9, 2024.

Appeal Process and Outcome

Following the Deputy Collector's orders, Deepak Nitrite filed appeals before the CCRA in Gandhinagar. The appellate authority's review resulted in:

• Complete relief in the first case, with the ₹21.00 lakh stamp duty demand and ₹50,000 penalty being entirely set aside
• Partial relief in the second case, where the matter has been remanded back to the Deputy Collector for reassessment of documentary evidence

Regulatory Compliance

The company disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This follows the company's earlier disclosure dated September 21, 2024, when the original Deputy Collector orders were announced.

Current Status

With one order completely overturned and the other sent back for fresh assessment, Deepak Nitrite has secured meaningful relief in this stamp duty matter. The remanded case will require the Deputy Collector to conduct a reassessment of the documentary evidence, potentially leading to a more favorable outcome for the company in the remaining dispute involving ₹86.10 lakh in stamp duty demands.