Vadodara: Deepak Nitrite Limited has infused Rs 100.00 Crore into its wholly owned subsidiary Deepak Chem Tech Limited through the allotment of 1,00,00,000 9 percent Optionally Convertible Redeemable Preference Shares on February 27, 2026. The investment was made by Deepak Phenolics Limited, another wholly owned subsidiary.
Deepak Nitrite has moved funds within the group to strengthen its chemicals vertical, backing project expansion at its fluorination subsidiary.
Preference Shares Allotted
Deepak Chem Tech Limited (DCTL) allotted 1,00,00,000 9 percent Optionally Convertible Redeemable Preference Shares of face value Rs 100 each to Deepak Phenolics Limited (DPL). The issue, made at par, aggregates to Rs 100.00 Crores and was completed on February 27, 2026.
The transaction was executed in cash through normal banking channels, reflecting a direct capital infusion rather than a share swap.
Strengthens Capital Base
The stated objective of the fund infusion is to strengthen DCTL’s capital base and support project expenses as well as general corporate purposes.
DCTL currently operates a state of the art fluorination plant and is pursuing projects across various sites in Gujarat. The company posted turnover of Rs 9.43 Crores in FY 2024-25, compared with Rs 0.86 Crores in FY 2023-24, indicating early-stage scaling of operations.
Its paid-up capital prior to the allotment stood at Rs 1999.50 Crores, comprising Rs 499.50 Crores in equity shares and Rs 1500 Crores in preference shares.
Related Party Transaction
Since both DCTL and DPL are wholly owned subsidiaries of Deepak Nitrite Limited, the transaction qualifies as a related party transaction under applicable accounting standards and the Companies Act, 2013.
However, the company clarified that the allotment was carried out at par and on an arm’s length basis, ensuring compliance with regulatory norms.
Ownership Structure Unchanged
Despite the fresh issuance, Deepak Nitrite Limited continues to hold 100 percent of DCTL’s equity share capital and, along with DPL, indirectly holds 100 percent of its preference share capital.
DCTL, incorporated on October 9, 2020, operates in India within the chemical industry.
The internal capital reshuffle signals Deepak Nitrite’s intent to accelerate project execution at its fluorination arm while maintaining full ownership control within the group.
