Shares of UPL Ltd were trading lower on Tuesday, January 20, after its arm Advanta Enterprises filed draft papers with the capital markets regulator for an initial public offering that will include a large stake sale by UPL.
UPL shares were down 0.76% at Rs 781.20 on the NSE in morning trade, reflecting investor reaction to the proposed offer-for-sale (OFS).
Agricultural solutions company Advanta Enterprises has filed a draft red herring prospectus (DRHP) with SEBI to raise funds through an IPO that will be entirely an OFS of 3.61 crore equity shares, with no fresh issue component. As per the DRHP, UPL will sell 2.8 crore shares in the public issue, while the remaining shares will be offered by investor shareholders Melwood Holdings II Pte Ltd. and KIA EBT Scheme 2.
Currently, UPL holds a little over 64% stake in Advanta Enterprises, while UPL Corporation owns nearly 14%. Since the IPO is fully an OFS, Advanta Enterprises will not receive any proceeds from the issue, and the entire amount raised will go to the selling shareholders.
Advanta Enterprises operates as a global agricultural solutions company focused on hybrid seeds and post-harvest products. As of September 30, 2025, its portfolio comprised more than 900 hybrid seed varieties across 21 breeding crops and 19 commercial crops, with products marketed across 74 countries. The company also runs a post-harvest solutions business through Decco.
On the financial front, Advanta Enterprises reported revenue of Rs 5,119 crore and PAT of Rs 800 crore in FY24. In FY25, revenue rose to Rs 5,685 crore, while PAT increased to Rs 921 crore. For H1 FY26, the company posted revenue of Rs 3,141 crore and PAT of Rs 540 crore.
JM Financial, Axis Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, and Morgan Stanley India Company are the merchant bankers to the issue.