UPL to create listed pure-play crop protection arm; board approves group reorganisation plan

UPL Ltd

• UPL to create two listed firms after group reorganisation.
• UPL Global will focus on crop protection, listed in India.
• Move aims to unlock value and simplify group structure.

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UPL Limited on Friday announced a board-approved group reorganisation that will carve out a dedicated, listed crop protection platform by consolidating its India and international crop protection businesses under a new entity, UPL Global Sustainable Agri Solutions Ltd.

The move, to be implemented through a composite scheme of arrangement, will result in two listed companies: UPL, which will continue as a diversified agriculture and specialty chemicals platform, and UPL Global, a pure-play crop protection company. UPL said the reorganisation is aimed at unlocking shareholder value, simplifying the group structure and enabling clearer valuation of its distinct businesses.

Under the approved transaction structure, UPL Sustainable Agri Solutions Ltd -- its India crop protection arm in which UPL holds a 90.91 percent stake -- will first be amalgamated into UPL. This will be followed by a vertical demerger of the India crop protection business into UPL Global. Separately, UPL Crop Protection Holdings Ltd, the holding entity for UPL’s international crop protection business in which the company owns 77.78 percent, will be merged into UPL Global. Post completion, both the India and international crop protection operations will be housed within UPL Global, which will be listed on Indian stock exchanges.

UPL said the scheme would create an integrated, pure-play crop protection platform with a global footprint, benefiting from a consolidated manufacturing base, research capabilities and product portfolio. The company also highlighted greater strategic and financial flexibility, noting that both UPL and UPL Global would be able to raise capital independently and optimise their capital structures in line with focused business strategies.

The board has approved the share exchange and entitlement ratios based on recommendations from independent valuers. The transaction is expected to be completed over the next 12-15 months, subject to approvals from regulators including SEBI, CCI, RBI, stock exchanges, the National Company Law Tribunal, and shareholders and creditors of the involved entities.

UPL shares closed 1.77 percent lower at Rs 751.50 on Friday, ahead of the announcement. The stock has gained 16.1 percent over the past year, outperforming the Nifty 50’s 11.6 percent rise, with the company’s market capitalisation standing at over Rs 63,700 crore.

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