Sustainable agriculture products and solutions provider UPL Ltd is likely to launch an initial public offering (IPO) of its seeds business Advanta Enterprises in early FY25, CNBC-TV18 reported quoting sources on April 4.
BofA Securities, Morgan Stanley, JM Financial are bankers to the Advanta IPO, the sources said, adding that the company plans to divest nearly 10 -12 percent stake the subsidiary.
The report further mentioned that UPL is likely to use proceeds of Advanta Ent issue for deleveraging. It is likely targeting a valuation of $4 billion.
The company had also planned a rights issue worth over Rs 4,000 crore and in an exchange filing on March 26, it mentioned that it is in the process of completing the necessary formalities and compliances for the same.
UPL owns 86.7 percent and private equity firm KKR has 13.3 percent stake in Advanta Ent. KKR had acquired the stake for $300 million in September, 2023.
Shares of UPL on April 4 were trading 2.61 percent higher at Rs 489.40 apiece on BSE during late trading hours.
UPL has reported a consolidated loss of Rs 1,217 crore during the December 2023 quarter (Q3FY24).
The company's net profit stood at Rs 1,087 crores during the corresponding quarter of the previous financial year, the company said in a regulatory filing.
Its revenue from operations declined 27.72 per cent to Rs 9,887 crore in the quarter under review from Rs 13,679 crore a year ago.
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