24-04-2025
Deepak Fertilisers shares rise 2% after incorporating new global trading arm in Singapore
Shares of Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) jumped nearly 2% to Rs 1,305.70 in early trade on April 24, 2025, after the company announced the incorporation of a new wholly owned subsidiary in Singapore, aimed at expanding its global commodities trading operations.
The stock hit an intraday high of Rs 1,310.90, up from its previous close of Rs 1,283.40, with a market cap of Rs 164.37 billion and a P/E ratio of 18.87. Deepak Globalchem Pte. Ltd. to drive international growth
In a filing on April 23, DFPCL confirmed the incorporation of 'Deepak Globalchem Pte. Ltd.', based in Singapore, with an initial capital infusion of USD 10,000. The new entity is yet to commence operations but will primarily engage in the purchase and sale of commodities, marking a strategic pivot towards international markets.
The move is aligned with the company's long-term objective of becoming a global player in the chemicals and fertilisers space. Singapore's status as a global trading hub is expected to help DFPCL improve its efficiency and reach in global commodity trading. No direct promoter interest, but a related-party transaction
DFPCL clarified that its promoters and promoter group hold no direct stake in the new subsidiary outside of their interest in the parent company. However, the incorporation has been classified as a related-party transaction under SEBI norms due to the 100% ownership structure. Strategic importance
The new Singapore-based subsidiary strengthens DFPCL's global footprint, providing access to international supply chains, price discovery, and logistical advantages. It is expected to open up new commercial opportunities and improve the company's resilience amid fluctuating domestic demand cycles. FAQs
What is the name of DFPCL's new subsidiary?
Deepak Globalchem Pte. Ltd.
Where is it incorporated?
Singapore.
What will it do?
It will focus on the purchase and sale of commodities globally.
Is the new entity operational yet?
No, it has been incorporated but has not yet commenced business.
Will promoters benefit directly?
No direct benefit; the structure remains within the listed entity, but it is a related-party transaction.
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