UPL acquires further 7.75% stake in Kerala Enviro Infra; stock slips ~2%

20 Jun 2022 , 09:33 AM

UPL Limited has informed that it has purchased 27,50,000 equity shares of Kerala Enviro Infrastructure Limited, an associate of UPL.

UPL has increased its current holding from 23.32% to 31.07% for a consideration of Rs4.70 crore.

The transaction includes the purchase of 27,50,000 equity shares on a rights issue basis at a price of Rs17.07 per equity share.

UPL is holding stake in KEIL since February 2007. KEIL offers environmental solutions to chemical industries in which UPL operates and supports the sustainability of operations.

KEIL is an associate of UPL and continues to be the associate even after increase in its holding. The shares have been acquired from BEIL Infrastructure Limited, which is a promoter group entity engaged in providing environmental solutions, hence related party transactions.

The Company and its other consortium partners collectively held 59.14% investment in KEIL with UPL’s share being 23.32% of the total capital.

At around 9.38 AM, UPL was trading at Rs648.80 down by Rs16.45 or 2.47% from its previous closing of Rs665.25 on the BSE. The scrip opened at Rs670 and has touched intraday high and low of Rs670.40 and Rs648 respectively.