Deepak Nitrite Infuses ₹120 Crore into Subsidiary DCTL

Key Highlights Deepak Nitrite has strengthened the capital base of its subsidiary Deepak Chem Tech Limited (DCTL) through a ₹120 Crore investment. Transaction Details • DCTL issued 1.20 crore 9% Optionally Convertible Redeemable Preference Shares (OCRPS) of ₹100 each to Deepak Phenolics Ltd. (DPL), raising ₹120 Crore. • Prior to the issue, DCTL's paid-up capital stood at ₹2,504.5 Crore, comprising ₹499.5 Crore equity and ₹2,005 Crore preference share capital. • The transaction was completed on July 10, 2026. Purpose of the Investment • Strengthen DCTL's capital base. • Fund ongoing and future project requirements. • Meet general corporate purposes. Business Overview • DCTL reported a FY26 turnover of ₹172.23 Crore. • The company operates chemical manufacturing facilities in Gujarat, producing Fluorination, Nitric Acid, Nitration, and Hydrogenation products. • Following the allotment, Deepak Nitrite continues to indirectly hold 100% of DCTL's equity and preference share capital. Market Impact Impact: Neutral to Positive The capital infusion strengthens the subsidiary's balance sheet and supports future expansion. As this is an internal group transaction with no change in ownership, the immediate financial impact on shareholders is limited. Learning Outcome Capital infusions into wholly owned subsidiaries help fund expansion projects, strengthen balance sheets, and improve financial flexibility without diluting the parent company's ownership.