Deepak Fertilizers to demerge chemicals & fertiliser business

The Board of Directors of Smartchem Technologies Limited approved a Corporate Restructuring Plan with the goal of unlocking the growth potential of each of the businesses.

STL is a wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India's leading manufacturers of industrial chemicals and fertilisers.

The board of directors approved the composite scheme of the arrangement, which highlights demerger of TAN business (Mining Chemicals) from STL to Deepak Mining Services Private Limited (DMSPL), Deepak Fertilisers and Petrochemicals Corporation Limited's  (DFPCL) wholly owned subsidiary.

It also approved the amalgamation of Mahadhan Farm Technologies Private Limited (MFTPL), being a wholly owned subsidiary of STL, with STL.

The company stated that the draft scheme of the merger is subject to customary, statutory, and regulatory approvals, including the approvals of respective shareholders and creditors, the NCLT, and any other regulators that may be required.

Following this development, Deepak Fertilizers was trading at Rs836 up by 2.9% from its previous closing of Rs812.40 on the BSE. The scrip touched an intraday high and low of Rs861 and Rs817.10 respectively.

For feedback and suggestions, write to us at editorial@iifl.com