UPL share price gained on September 4 after in-principle approval from the company's board for unlocking value in Advanta by raising funds.
UPL owns 86.7 percent and private equity firm KKR has 13.3 percent stake in Advanta Ent.
Sustainable agriculture products and solutions provider will explore multiple options available for unlocking value in Advanta by raising funds through primary or secondary issuances of securities. It may be by way of private placements or public offerings or any other permissible mode, the company said in an exchange filing.
"The shareholders of UPL Limited had approved creation of distinct pure play platforms in FY23 and in line with the said approval, a separate platform was created by transferring Seeds business to Advanta Enterprises Limited, subsidiary of the Company. One of the main objectives of creating a separate Advanta platform was to facilitate unlocking value for the shareholders of UPL Limited at an appropriate time," it added.
The shares gained 1.28 percent to quote at day's high of Rs 609.95 per share on the NSE. It has been gaining for the last four days and has risen 5.55 percent in the period.
In an earlier report on Moneycontrol, it was reported 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.
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