Advanta to merge with UPL; to get 1 eq share, 3 pref shares

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Global generic crop protection, chemicals and seeds company, UPL (formerly known as United Phosphorous) said board members on Monday have approved amalgamation of Advanta with itself.

Post merger, seed company Advanta's every shareholder will get one equity share and three preference shares of UPL for every share held in the company.

UPL said GDR (global depository receipt) holders of Advanta would get 106 new GDRs for every 100 GDRs held and FCCB (foreign currency convertible bonds) holders would get 100 FCCBs for every 100 FCCBs held.

Promoters UPL (46.47 percent stake), Nerka Chemicals, Uniphos Enterprises along with Shroff family hold 59.51 percent stake in Advanta as of September 2015.

UPL's shareholding in Advanta shall stand cancelled on amalgamation, it said.

Analysts say Advanta could benefit from UPL's presence in Mexico, Brazil, Colombia, China while UPL could benefit from Advanta's market presence in Thailand, Australia.

Administrative expenses, interest and tax cost may see reduction going ahead after this merger, they feel.

With the 1:1 swap ratio, the deal is going to be very positive for UPL, says Investment advisor, SP Tulsian.

According to him, this is a good investing opportunity for short-term traders. He has a target price of Rs 650-750 on the stock.

At 10:07 hours IST, the scrip of Advanta was quoting at Rs 493.10, up Rs 16.95, or 3.56 percent after hitting an intraday high of Rs 532.85 (up 11.9 percent). However, UPL corrected by 0.86 percent to Rs 454.05 after a 3 percent rally.