Global investment firm Alpha Wave Global has agreed to acquire a 12.5% stake in Advanta Enterprises, a hybrid seeds subsidiary of agrochemicals major UPL, for $350 million. The deal, announced on Tuesday, consists of a $100 million primary investment by Alpha Wave and the purchase of UPL’s shares in Advanta worth $250 million.
According to UPL’s statement, the funds from the primary investment will be utilized to support Advanta’s growth initiatives, both organic and inorganic. Meanwhile, the proceeds from the share sale will help UPL deleverage its balance sheet. As of September 2024, UPL’s net debt stood at $3.28 billion.
This marks the second significant investment in Advanta Enterprises by a global investor, following KKR’s $300 million infusion in October 2022. The latest investment is expected to accelerate Advanta’s growth and support UPL’s financial restructuring efforts, boosting investor confidence in the company.
As of 9:27 am the shares were trading 0.027% higher at ₹546.95 on NSE.
Agrochemicals manufacturer UPL Ltd has announced plans to raise up to Rs 3,378 crore through a rights issue priced at Rs 360 per share, as per its filing with stock exchanges on November 20. This represents a significant step to strengthen its balance sheet and fund strategic growth initiatives.
The rights issue involves the issuance of 9.38 crore partly paid-up equity shares, offering shareholders one share for every eight fully paid-up shares held as of the record date, November 26. The issue price of Rs 360 reflects a discount of approximately 34% to UPL’s closing price of Rs 546.85 on November 19 on the BSE.
The company outlined that the issue price includes a face value of Rs 2 and a premium of Rs 358. Payments will be made in installments, with Rs 90 payable on application and the remaining Rs 270 in subsequent calls.
The subscription period will run from December 5 to December 17, with an on-market renunciation window available from December 5 to December 11. UPL stated that this fundraising initiative is aimed at supporting the company’s growth ambitions and ensuring financial stability.
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