UPL board approves value unlocking in Advanta through these methods

UPL Ltd. informed the exchanges that its board has granted an in-principle approval to explore various options available to unlock value in Advanta Enterprises Ltd.

UPL had transferred its seeds business to Advanta Enterprises to facilitate unlocking value for shareholders of UPL in financial year 2023.

Value unlocking in Advanta could be done through raising funds via primary or secondary issuances of securities, by way of private placements or public offerings, or other permissible modes, or a combination of all of these.

UPL said that it will make further disclosures as and when warranted for such definitive proposals.

CNBC-TV18 had reported in April this year that UPL is looking to launch Advanta's IPO in financial year 2025 and is likely to seek a $4 billion valuation for the seeds business.

UPL was likely to divest stake between 10% and 12% through the Advanta IPO, CNBC-TV18 had reported, citing sources with knowledge of the matter.

Currently, UPL owns a 86.7% stake in Advanta, while the rest is owned by KKR, the private equity player, who had acquired that stake in September 2023 for $300 million.

For financial year 2023, Advanta had reported revenue of ₹3,558 crore and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹921 crore.