Deepak Nitrite Subsidiary Allots ₹100 Crore OCRPS To Sister Arm

Deepak Nitrite Limited disclosed that its wholly owned subsidiary Deepak Chem Tech Limited (DCTL) issued and allotted 1,00,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) of ₹100 each, aggregating ₹100.00 crore, to another wholly owned subsidiary, Deepak Phenolics Limited (DPL), as per a Regulation 30 filing with the National Stock Exchange of India.

The capital infusion was undertaken to strengthen DCTL’s capital base and support ongoing project expenditure and general corporate purposes, according to the exchange notification dated February 27 2026 (Ref: DNL/140/NSE/1641/2026).

Structure and Regulatory Framework of the Allotment

DCTL allotted 1,00,00,000 OCRPS at par ₹100 per share resulting in a total consideration of ₹100.00 crore. The securities carry a coupon of 9% and are classified as optionally convertible and redeemable preference shares. Payment was made in cash through normal banking channels.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated 11 July 2023, as amended.

The transaction qualifies as a related party arrangement, as both DCTL and DPL are wholly owned subsidiaries of the listed parent. The company stated that the allotment was executed on an arm’s length basis in accordance with applicable Indian Accounting Standards and the Companies Act, 2013.

What is Optionally Convertible Redeemable Preference Shares (OCRPS)

OCRPS are hybrid instruments combining features of debt and equity. They typically carry a fixed dividend rate and may, at the option of the holder or issuer depending on terms, convert into equity or be redeemed after a specified tenure. Such instruments are often used within group structures to optimise capital allocation without immediate equity dilution.

Shareholding Position Remains Unchanged

Prior to the allotment, Deepak Nitrite held 100% of DCTL’s equity share capital and, together with DPL, indirectly held 100% of its preference share capital. Post-allotment, the parent continues to hold 100% of the equity share capital of DCTL and, along with DPL, indirectly holds 100% of the preference share capital.

In effect, the transaction does not alter ultimate ownership or control. It represents an internal capital reallocation within the group structure rather than an acquisition of an external entity.

Background Of Deepak Chem Tech Limited

DCTL was incorporated on October 9, 2020 and operates in the chemical industry. The subsidiary runs a fluorination plant and is pursuing projects across multiple sites in Gujarat.

Financially, DCTL reported turnover of ₹9.43 crore in FY 2024–25, compared with ₹0.86 crore in FY 2023–24. No turnover was reported for FY 2022–23. Its paid-up capital prior to the present allotment stood at ₹1,999.50 crore, comprising ₹499.50 crore in equity shares and ₹1,500.00 crore in preference shares.

No governmental or regulatory approvals were required for the investment, as stated in the filing.

Capital Support, Not Strategic Shift

The allotment appears structured as balance sheet support for project execution rather than a strategic restructuring. There is no change in the line of business, and DCTL’s activities remain aligned with the listed entity’s core chemicals operations.

Management did not provide forward-looking financial guidance in the filing. The development, however, formalises an additional ₹100.00 crore funding line within the group’s project framework incremental, internal, and procedurally compliant.

Source:

• https://nsearchives.nseindia.com/corporate/DEEPAKNTR_27022026143128_NSELetter27022026.pdf
• https://www.nseindia.com/get-quote/equity/DEEPAKNTR/Deepak-Nitrite-Limited