History of Deepak Fertilizers and Petrochemicals Corp. Ltd.
YEAR EVENTS 1979 - The Comp. was incorporated as a private Ltd Comp. on 31st May, & converted into a public Comp. on 14th June, 1979. It manufactures anhydrous liquid ammonia which is a heavy chemical as well as a fertiliser. The Comp. has been promoted by Deepak Nitrite Ltd, & Shri C.K. Mehta.
- The Comp. entered into an agreement with Fish International Engineers Inc., U.S.A. [FISHs] for supply of process design, complete basic & detailed engineering within the ammonia plant battery limit including all equipment specifications for purchase & supply of data for off sites.
- FISH has guaranteed the performance of plant capacity, raw material & utility consumption & product quality.
- The Comp. entered into an agreement with HALDOR Topsoe, Denmark for supply of design for ammonia converter & review of synthesis loop design.
- The Comp. entered into a Patent Licence and Technology Transfer agreement with Union Carbide Corporation, New York, U.S.A., for their amine guard process for carbon-di-oxide removal.
- The Comp. entered into an agreement with Engineers India Ltd., for providing consultancy, review of design, recommending design changes, detailed engineering for off-sites, preparation of equipment specifications for off-sites & associated engineering work.
1982 - 10 No. of equity shares subscribed for by Deepak Nitrate Ltd. 1,50,000 - 13.5% pref. & 1,14,99,990 No. of equity shares issued at par; [as] 45,99,990 No. of equity shares issued at par; [bs] 45,99,990 Equity shares reserved for firm allotment to Deepak Nitrite, limited & C.K. Mehta & his family; [cs] 11,50,000 No. of equity shares reserved firm allotment to International Finance Corporation, Washington [ds] 11,50,000 No. of equity shares reserved for allotment on preferential basis to NRIs and investors from Oil Exporting Developing Countries with repatriation rights & [es] 46,00,000 No. of equity shares and 1,50,000 Pref. shares offered to the public in May. The original 9-11% Pref. shares redeemed.
1985 - The Comp. received a letter of intent to manufacture per annum 75,000 tonnes of dilute nitric acid, 33,000 tonnes of concentrated nitric acid & 36,000 tonnes of low density prilled ammonium nitrate.
1986 - The Comp. received a letter of intent for manufacture of 2,29,500 TPA of ammonium nitrophosphate [ANPs]. The Company undertook an integrated project for manufacture of nitric acid, ammonium nitrate methanol & ANP.
1988 - 25-15% Pref. shares & 3,000 No. of equity shares forfeited in the previous year reissued.
1989 - Production & sales were affected by closure of plant for about 2 months due to strike by workers.
- A letter of intent was received for manufacture of 45,000 TPA of various resins based on methanol.
- During January, the Comp. issued 190,00,000-14% secured convertible debentures of Rs 100 each for cash at par of which 60,00,000 debentures were offered on rights basis in the proportion 4 deb. : 10 equity shares. Additional 9,00,000 debentures were allotted to retain over subscription. Also 20,00,000 debentures were reserved & allotted to UTI, LIC, ICICI & GIC.
- Of the balance 110,00,000 debentures, the following were reserved for allotment on a preferential basis: [is] 26,00,000 debentures to NRI on repatriation basis [iis] 13,00,000 debentures to farmers, agriculturists, agricultural co-operative societies and investors from rural areas & [iiis] 9,50,000 debentures to employees [including Indian working directorss]/workers of the Company.
- The remaining 61,50,000 debentures were offered for public subscription. Additional 19,50,000 debentures were allotted to retain over subscription [1,350 shares to Iris & remaining 19,48,650 to publics].
- Each debenture with a face value of Rs. 100 consists of 3 parts viz., Part A of Rs 20, Part B of Rs 30 & Part C of Rs 50 each with a detachable warrant.
- Part A is to be compulsorily & automatically converted into 1 equity share of Rs 10 each at a premium of Rs 10 per share on 1st January, 1990.
- Part B is to be compulsorily & automatically converted into 1 equity share of Rs 10 each at a premium of Rs 20 per share on 1st January, 1991. 218,50,000 No. of equity shares issued on 1.1.1990 on conversion of Part A of debentures.
- Part C of each debenture the holder shall have a right to seek allotment of one equity share of Rs 10 as may be fixed by CCI. If Part C is not surrendered for allotment of one equity share, it will be redeemed after the expiry of 7 years or not later than 10 years from the date of allotment of debentures.
1990 - Fertilisers were sold under the brand name 'Mahadhan'.
- The Comp. undertook to implement projects for manufacture of resins & carbon-di-oxide/dry ice at a total estimated cost of Rs 75 crores.
1991 - A major breakdown of one of two engines/compressors and disruption of gas supply due to the nationwide strike at ONGC.
- The ammonium nitrophosphate plant along with the second stream of dilute nitric acid plant & the Methanol plant were proposed to be commissioned by end of October.
- Trial productions of second stream dilute nitric acid plant, ammonium nitrate plant & ammonium nitro phosphate plant were commissioned. Methanol plant was commissioned in December.
1992 - The methanol plant affected due to an explosion & the ANP plant due to partial decontrol of fertilisers. The methanol plant remained closed for major part of year due to an explosion in the converter section of plant. The ANP plant remained practically closed since September.
- The disruption of methanol due to the explosion on 30th October, & the financial crunch experienced by Company, compelled the Comp. to keep projects for manufacture of resins & CO2 in abeyance.
1994 - The Comp. re-activated the carbon-dioxide project.
- During November, the Comp. allotted 150,00,000 warrants to the promoter group against 10% up front payment carrying the right to convert the same into equity shares within 18 months price of Rs 28.65 per share.
- 151,02,093 No. of equity shares were allotted at a premium of Rs 10 per share to those who exercised the warrants on 31.5.1995.
- The Comp. decided to undertake debottlenecking of ammonia plant which would raise the capacity by 20%.
1996 - The Comp. proposed to debottleneck the Ammonia ANP fertiliser plant in order to augment their capacities & to bring down the cost per ton. Also proposed to add bulk fertilisers as well as specialised agro products & services to provide an enlarged basket of products to the farmers at a single window.
- Pref. shares redeemed during the year, 150,00,000 shares allotted [prem. Rs 18.65s] to promoters on conversion of warrants. 4,27,900 shares forfeited.
2000 - The Pune-based Deepak Fertilizers & Petrochemicals Corporation Ltd is setting up a new nitric acid plant with an annual capacity of one lakh tonnes at Taloja in Maharashtra.
- Deepak Fertilisers & Petrochemicals Corporation Ltd has chalked out plans to invest about Rs.100 cr.
2002
-Board approves for buyback of equity shares upto 10% of its paid up capital & free reserves.
-Mr A C Mehta appointed as the additional Director on the Board of company.
-Hands over its price bid to fertilizer unit of Rourkela Steel Plant.
-Shri D C Mehta ,MD is elevated to the position of Vice-chairman & in his place Shri S C Mehta has been appointed as the MD.
2003
-Buyback of equity shares closed on January 20.
-Inducts Knight Frank as its real estate consultant.
-Board approves for setting up 6MW capacity cogeneration capitive power plant .
2004
-Deepak Fertilizers & Petrochemicals Corporation Ltd has informed that the Comp. has entered into License Agreement & related contracts with Aker Kvaerner Inc., Houston, USA, for manufacture of 70,000 MT per annum Isopropyl Alcohol [IPAs] at the plant at Taloja, Mumbai. The total outlay for this project is estimated to be Rs. 2,000 million
