Deepak Nitrite Limited announced that its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued and allotted 68,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of ₹100 each, aggregating to ₹68 crore, to another wholly-owned subsidiary, Deepak Phenolics Limited (DPL).

DCTL is an Indian company and a wholly-owned subsidiary of Deepak Nitrite Limited. Prior to this allotment, DCTL had a paid-up capital of ₹1851.50 crore, comprising ₹499.50 crore of Equity Shares and ₹1352 crore of Preference Shares. DCTL operates a state-of-the-art Fluorination plant and is pursuing projects across various sites in Gujarat. Its turnover for FY 2024-25 was ₹9.43 crore.

The transaction is between related parties, as both DCTL and DPL are wholly-owned subsidiaries. The OCRPS were allotted at par, meaning at ₹100 each, for a total of ₹68 crore. This infusion of funds is intended to strengthen DCTL's capital base, support project expenses, and for general corporate purposes. The business of DCTL is within the main line of business of the listed entity. No governmental or regulatory approvals are required for this investment.

Deepak Nitrite Limited continues to hold 100% of the Equity Share Capital of DCTL. Post-allotment, along with DPL, it indirectly holds 100% of the Preference Share Capital of DCTL.