Deepak Nitrite Infuses Rs 175 Crore Into Subsidiary

175 crore total investment and 9% OCRPS interest rate.

Reader Takeaway: Internal capital allocation supports DCTL's rapid growth in high-value chemical manufacturing segments without raising external debt.

What just happened

Deepak Nitrite Limited (DNL) has completed a capital infusion of Rs 175 crore into its wholly owned subsidiary, Deepak Chem Tech Limited (DCTL). The transaction, finalized on August 26, 2026, involved the issuance of 1.75 crore Optionally Convertible Redeemable Preference Shares (OCRPS) at a face value of Rs 100 each. Deepak Phenolics Limited (DPL) contributed Rs 95 crore, while parent company DNL provided Rs 80 crore.

Why this matters

DCTL serves as the vehicle for several of Deepak Nitrite’s newer chemical initiatives, particularly in fluorination, nitration, and hydrogenation. The fresh capital provides the necessary liquidity to fund ongoing capital expenditure and general corporate requirements. By opting for an internal preference share arrangement, the group ensures DCTL maintains financial flexibility while scaling operations.

Context metrics

DCTL has shown aggressive turnover growth as its projects come online: the entity reported a turnover of Rs 172.23 crore in FY 2025-26, a significant jump from Rs 9.43 crore in FY 2024-25 and Rs 0.86 crore in FY 2023-24.

What to track next

Investors should monitor the operational progress of DCTL’s projects in Gujarat and observe how the capital deployment translates into revenue growth over the coming quarters as the company moves deeper into the specialty chemicals space.