UPL Raises US$750 Million Through Stake Sale in Seeds Business and Rights Issue

Date:11-20-2024

UPL Limited has announced that its Board of Directors, at their meeting held on November 19, 2024, has approved:

A. The divestment of an 8.93% stake (post initial investment) in its seeds business subsidiary, Advanta Enterprises Limited (AEL), to PE investor Alpha Wave Ventures II, LP ("Alpha Wave") for a total consideration of US$250 million;

B. AEL's proposal to raise funds through a new investment in ordinary share capital by Alpha Wave for a total consideration of US$100 million.

Upon completion of the transactions, UPL will retain a 74.70% stake in AEL, while initial investor KKR will hold 12.86%, and Alpha Wave will own 12.44%.

Furthermore, at the Rights Issue Committee meeting of the Board held on November 20, UPL Limited has approved the terms of the rights issue, including the issuance of 93,825,955 partly paid-up ordinary shares at a price of INR 360 per share. The record date for eligible shareholders has been set as November 26, 2024, with the rights subscription period running from December 5 to December 17, 2024. Post-rights issue, the outstanding ordinary shares are expected to be 844,433,596. The company has arranged for rights entitlements to be credited in dematerialized form under a separate ISIN (International Securities Identification Number).

In aggregate, these strategic initiatives will raise a total of US$750 million for UPL.