The original agreement, signed on February 19, 2024, has been transferred to DGPL, which will now assume all rights and obligations as the buyer under the contract. Following the novation, the parent company will be released from direct contractual obligations, while extending corporate guarantee support subject to agreed conditions.
The agreement entails an annual LNG supply of up to 0.65 million tonnes over a period of 15 years, commencing from 2026.
DGPL is a wholly owned subsidiary of the company, with 100% shareholding held by Deepak Fertilisers. The company clarified that the transaction does not fall under related party transactions.
The company further stated that there are no additional disclosures related to the agreement, including nominee representation on the board, potential conflict of interest, or similar governance concerns.
It also noted that there are currently no amendments or termination-related disclosures applicable to the agreement.
The move is aimed at streamlining operations and aligning global sourcing agreements under its international subsidiary structure.
Deepak Fertilizers & Petrochem. Corp is primarily engaged in the business of manufacture, trading and sale of bulk chemicals. The Company also has operations in value added real estate.
The company’s consolidated net profit declined 43.6% to Rs 141.49 crore despite 9.7% rise in revenue from operation to Rs 2,830.07 crore in Q3 FY26 over Q3 FY25.
Shares of Deepak Fertilisers & Petrochemicals Corporation zoomed 8.48% to settle at Rs 998.50 on the BSE. The stock market remained closed today on account of Shir Ram Navami.