Agrochemicals maker UPL Ltd on November 20 announced it will raise up to Rs 3,378 crore through rights issue of 9.38 crore partly paid shares at Rs 360 apiece.
"The Rights issue Committee of Board of Directors at its meeting held on November 20, 2024, has decided to issue equity shares on rights basis in the ratio of 1 : 8, i.e 1 equity share for every 8 equity shares held. Issue price is Rs 360 per share," said UPL in a stock exchange filing.
The rights issue price is at a 34% discount from the closing market price of UPL stock on November 19 at Rs 545.5.
UPL has informed the stock exchanges that record date for the purpose of rights is November 26 and the issue opens on December 5 and closes on December 17.
Key dates of rights issue:
1. Rights Issue Opening Date: Thursday, December 5, 2024.
2. On-market renunciation period: Thursday December 5, 2024 to Wednesday December 11, 2024.
3. Off-market renunciation: It is to be noted that the eligible equity shareholders will have to ensure that renunciation through off-market transfers are completed in such a manner that the rights entitlements are credited to the demat account of the renouncees on or prior to the Issue closing date.
4. Rights Issue Closing Date: Tuesday, December 17, 2024.
The rights issue is yet another step towards UPL reducing its debt. On November 19, UPL and Alpha Wave Global have signed agreements where Alpha Wave will invest $350 million to acquire a 12.5% stake in Advanta Enterprises, an UPL subsidiary.
UPL will sell 8.93% stake in Advanta to the PE investor for $250 million and UPL's board approved Advanta's proposal to raise funds through fresh investment by Alpha Wave for $100 million.
In September quarter, UPL posted a wider quarterly loss, hurt by pricing pressures.
The company reported a consolidated net loss of Rs 443 crore for the three months ended September 30 from a loss of Rs 189 crore a year earlier.
Revenue from operations rose 9.1% to Rs 11,090 crore, while total expenses were 10.9% higher at Rs 11,510 crore.
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