Deepak Nitrite invests 20 per cent stake in DOIL

Deepak Nitrite Limited has informed the bourses about investing around 20 per cent stake in Deepak Oman Industries FZC LLC (DOIL), a Limited Liability Company (LLC) incorporated in Sultanate of Oman amounting to an investment of approximately USD 7.71 million, in one or more tranches.

DOIL is one of the players of the chemical industry. The present paid up capital of DOIL is 16,57,195 equity shares of Omani Riyat (RO) one each. DOIL is yet to start its commercial activities.

This acquisition would be beneficial for Deepak Nitrite as DOIL is an upcoming inorganic chemicals manufacturing company which benefits from low cost inputs of raw materials, energy and plans to serve the global markets.

The purported investment is in the Greenfield project and the investment would be done in two to three vears' time. DOIL is setting up a project to manufacture Chlor-Alkali and downstream products including inorganic salts such as Hypochlorite, Calcium Chloride, Sodium Nitrite, Sodium Nitrate etc in Salalah Free Zone (SFZ).

Deepak Nitrite offers Sodium Nitrite, two Ethyl Hexyl Nitrate and Optical Brightening Agent (OBA). Its segments include Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC) and Fluorescent Whitening Agent (FWA).

The company had earlier announced about the payment of interim dividend of Rs 4.5 per equity share of Rs 2 for FY20 to its shareholders. The record date fixed for the same is March 17, 2020.

On Wednesday, the stock of Deepak Nitrite closed at Rs 522.10. On Thursday, it opened at Rs 529.40, up by 1.4 per cent.