Agrochemical company UPL Ltd plans to raise up to Rs 3,378 crore through a rights issue by offering 9.38 crore partly paid equity shares at Rs 360 each. The issue price represents a 34% discount to the closing price of Rs 545.5 on November 19. Eligible shareholders can subscribe to one equity share for every eight shares held.
The record date for determining the shareholder eligibility is November 26. Following this, the right issue subscription will open on December 5 and shall close on December 17, 2024.
The deal forms part of the overall deleveraging strategy of UPL. Earlier this month, the company signed an investment agreement worth $350 million with Alpha Wave Global, along with the sale of an 8.93% stake in its fully owned subsidiary Advanta Enterprises and fresh investments to expand equity.
Key details of the rights issue:
- Issue Ratio: 1 equity share for every 8 shares held.
- Price: Rs 360 per share.
- Record Date: November 26, 2024.
- Subscription Period: December 5 to December 17, 2024.
- Renunciation Window: December 5 to December 11, 2024 (on-market).
In its latest financial results, UPL reported a net loss of Rs 443 crore in Q2FY25, compared to a Rs 189 crore loss a year ago, despite a 9.1% rise in revenue to Rs 11,090 crore.
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Source: Moneycontrol
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