UPL to pare 12.5% stake in Advanta for $350 Million

21 Nov 2024 , 08:51 AM

UPL Ltd., a global agrochemical manufacturer and distributor, has informed the markets that it has signed formal agreements with Alpha Wave Global under which the latter will invest $350 Million to buy about a 12.5% share in its seeds business, Advanta Enterprises.

UPL will make a $100 Million first investment in Advanta and then sell $250 Million in secondary shares.

The principal proceeds will be used to accelerate Advanta’s expansion through organic and inorganic efforts, leveraging its strong competitive position and tailwinds in the global seeds sector.

UPL will use the secondary proceeds to deleverage its balance sheet.

This is the second investment by a worldwide investor in Advanta, following KKR’s $300 Million investment in October 2022.

UPL was projected to divest a stake of 10% to 12% through the Advanta IPO.

UPL is also planning to conduct an IPO for Advanta Enterprises.

It was reported in April 2024 that UPL plans to launch Advanta’s IPO in fiscal year 2025, with a targetUPL currently controls 86.7% of Advanta, with the remaining portion held by KKR, a private equity firm that paid $300 Million for it in September 2023.

In 2023, Advanta reported sales of ₹3,558 Crore and EBITDA of ₹921 Crore.

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