Deepak Chem Tech Strengthens Capital with ₹1.63 Billion OCRPS Issue to Group Company Deepak Phenolics

Unknown Apr 02, 2026 600 Views

Mumbai, April 16, 2025 – Deepak Chem Tech, a unit of Deepak Nitrite Ltd, has declared the successful issuance of optionally convertible redeemable preference shares (OCRPS) amounting to ₹1.63 billion to group firm Deepak Phenolics Ltd. The decision is a strategic internal capital raise to f...

Mumbai, April 16, 2025 – Deepak Chem Tech, a unit of Deepak Nitrite Ltd, has declared the successful issuance of optionally convertible redeemable preference shares (OCRPS) amounting to ₹1.63 billion to group firm Deepak Phenolics Ltd. The decision is a strategic internal capital raise to fuel Deepak Chem Tech's growth aspirations and operational needs.

Key Highlights:

Strategic Fundraising:

The issuance of ₹1.63 billion in OCRPS gives Deepak Chem Tech the flexibility of long-term funding. The preference shares can be converted into equity or redeemed in the future, providing the company with financial flexibility to address project, expansion, and working capital requirements.

Enhancing Intra-Group Synergy:

By tapping capital from Deepak Phenolics—the other subsidiary of Deepak Nitrite—the group is using in-house resources to maximize financing, minimize external debt dependence, and keep control over its growth path intact.

Growth and Expansion:

The new capital will allow Deepak Chem Tech to seek new projects, increase production capabilities, invest in technology upgradation, and take care of industry demand in the highly competitive chemical sector.

Sector Context:

While the Indian specialty chemicals industry keeps growing on domestic and international fronts, timely investments and robust group support are essential in order to scale innovation and seize emerging opportunities.

Leadership Insights:

A spokesperson for the company said,

"This equity infusion from OCRPS reaffirms our focus on sustainable growth and operational excellence at the group level. It primes us for the next leg of growth."

Outlook:

With strong internal financing, Deepak Chem Tech will pursue faster development plans, strengthening Deepak Nitrite's position at the top in the Indian chemicals and specialty products business.

Source: Company announcement, stock exchange filings, April 16, 2025.

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