Rs. 80 Crores Investment in Wholly Owned Subsidiary via 9% OCRPS Allotment
Deepak Chem Tech (DCTL), a wholly owned subsidiary, has allotted 80,00,000 9% Optionally Convertible Redeemable Preference Shares of ₹ 100 each, totalling ₹ 80 Crores, to Deepak Phenolics (DPL), another wholly owned subsidiary.
- Investment Amount
- ₹ 80 Crores
- Instrument
- 9% Optionally Convertible Redeemable Preference Shares
- Share Count
- 80,00,000 shares at ₹ 100 each
- DCTL Turnover FY 2025-26
- ₹ 172.23 Crores
- Allotment Date
- 29th September, 2026
What happened
Deepak Chem Tech Limited (DCTL), a wholly owned subsidiary, has issued and allotted 80,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) of face value ₹ 100 each, aggregating ₹ 80 Crores, to Deepak Phenolics Limited (DPL), another wholly owned subsidiary of the company.
Key terms
- Allotment made at par, i.e. ₹ 100 each
- Coupon: 9%, optionally convertible and redeemable
- Consideration: cash, through normal banking channels
- Date of allotment: 29th September, 2026
- No governmental or regulatory approvals required
Why it was done
The stated object is to strengthen DCTL's capital base and support DCTL in carrying out project expenses and general corporate purposes. DCTL's business is not outside the main line of business of the listed entity.
About DCTL
- Paid-up capital prior to this allotment: ₹ 2919.50 Crores, comprising ₹ 499.50 Crores of equity shares and ₹ 2,420 Crores of preference shares
- Operates plants for Fluorination, Nitric Acid, Nitration and Hydrogenation, and has been pursuing projects across various sites in Gujarat
- Turnover: FY 2025-26 ₹ 172.23 Crores; FY 2024-25 ₹ 9.43 Crores; FY 2023-24 ₹ 0.86 Crores
- Incorporated on 9th October, 2020; operating in India
Related party aspect
DCTL and DPL are both wholly owned subsidiaries and hence related parties under Indian Accounting Standards and the Companies Act, 2013. The company states the transaction is on an arm's length basis.
Ownership position
Before and after the allotment, Deepak Nitrite Limited continues to hold 100% of the equity share capital of DCTL and, along with DPL, holds indirectly 100% of the preference share capital of DCTL.
How to read it
This is an internal movement of funds between two wholly owned subsidiaries rather than an external acquisition. At the consolidated level the group's ownership structure is unchanged; the funding supports DCTL's ongoing project activity.
Also from Deepak Nitrite
Wholly Owned Subsidiary Commissions Chlorination and Specialty Chemical Plant at Dahej
29 Sep 2026
More numbers
- OCRPS allotted80,00,000
- Face value per OCRPSt 100 each
- Total investmentt 80 Crores
- Coupon rate on OCRPS9%
- DCTL paid-up capital prior to allotmentt 2919.50 Crores
- DCTL equity share capitalt 499.50 Crores
- DCTL preference share capital{ 2,420 Crores
- DCTL turnover FY 2025-26< 172.23 Crores
- DCTL turnover FY 2024-25t 9.43 Crores
- DCTL turnover FY 2023-24t 0.86 Crores
- Equity holding in DCTL after allotment100%
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