UPL may raise $500-550 million from KKR, Abu Dhabi Investment Authority etc.

21 Oct 2022 , 02:42 PM

According to news reports, KKR and Co., Brookfield, existing investors TPG and Abu Dhabi Investment Authority (ADIA), are looking to invest $500-550 million in two of UPL Limited's fully owned subsidiaries. UPL Limited is the top provider of agrochemicals, seeds, and crop protection.

While Brookfield, TPG, and ADIA are anticipated to invest an additional $200-250 million in UPL Sustainable Agri Solutions Limited, which focuses on the production and marketing of agrochemicals and formulations, while KKR is anticipated to invest $300 million in Advanta, a company that specializes in seed technology. The two arms will be valued at $5 billion ($2.5 billion each) after the infusion.

As of Wednesday, the parent company, UPL Limited, formerly known as United Phosphorus Limited, had a market value of Rs53,112.62 crore ($6.63 billion).

According to the most recent BSE filings, The Shroff family and UPL Promoters own 28.9% and 71.04%, respectively, of the company.

An official statement is anticipated for this week, though it can happen as soon as Thursday night following the UPL Ltd board meeting.

Advanta's seeds division reported FY 2022 revenues of Rs 2985 crore and EBITDA of Rs774 crore. Over the previous year, the company increased by 24%. EBITDA increased by 23% over the past three years (FY 2019—22), while revenue rose at a 14% CAGR. After the transaction, it is anticipated to rank among the most valuable independent seed companies.

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