Deepak Nitrite Arm Allots ₹550 Million Preference Shares To Group Company

Deepak Nitrite Ltd. on Friday said its wholly owned subsidiary, Deepak Chem Tech Ltd., has allotted 5.5 million 9% optionally convertible redeemable preference shares to Deepak Phenolics Ltd., another group arm, for ₹550 million.

The infusion is aimed at strengthening Deepak Chem Tech’s capital base and supporting ongoing project-related expenses, the company said in an exchange filing. The preference shares have a face value of ₹100 each.

Deepak Chem Tech has been operating a fluorination plant since March and is executing multiple projects across sites in Gujarat, the company said.

Following the allotment, the paid-up capital of Deepak Chem Tech stands at ₹14.63 billion, comprising ₹5 billion in equity and ₹9.63 billion in preference shares. Deepak Nitrite continues to hold 100% of the equity and, along with Deepak Phenolics, indirectly holds the entire preference capital.