UPL Preps Seeds Unit Advanta Ent for FY25 IPO

5 Apr 2024 , 10:33 AM

According to sources cited by CNBC-TV18 on April 4, UPL Ltd, a producer of sustainable agriculture goods and solutions, is expected to begin the initial public offering (IPO) of its seeds company Advanta Enterprises in early FY25.

As to the sources, Advanta’s IPO bankers include BofA Securities, Morgan Stanley, and JM Financial. The corporation also intends to sell off roughly 10–12% of the subsidiary.

The report also stated that UPL is probably going to use the money from the Advanta Ent issuance to reduce its debt. Presumably, a $4 billion valuation is the goal.

Additionally, the company had planned a rights issue valued at over ₹4,000 Crore, and it stated in an exchange filing on March 26 that it was currently finalizing the required paperwork and compliances for the same.

Advanta Ent is owned 86.7% by UPL and 13.3% by private equity company KKR. In September 2023, KKR paid $300 million to purchase the shareholding.

On April 4, during late trading hours on the BSE, shares of UPL were trading 2.61% higher at ₹489.40 apiece.

For the quarter ending in December 2023, UPL recorded a combined loss of ₹1,217 Crore (Q3FY24).

According to a regulatory filing, the company’s net profit for the same quarter of the prior fiscal year was ₹1,087 Crores.

From ₹13,679 Crore in the previous year to ₹9,887 Crore in the current quarter, its operating revenue fell by 27.72%.

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