UPL shares surge 3%; here are two updates you need to know

On Tuesday, UPL and Alpha Wave Global, a leading global investment firm, announced the signing of definitive agreements under which Alpha Wave Global will invest US$ 350 million to acquire approximately a 12.5% stake in Advanta Enterprises Limited (“Advanta” or “the Company”), a subsidiary of UPL and a leading global seed company that delivers innovative farming solutions and technology to farmers around the world.

The transaction is a combination of a primary investment of US$ 100 million and a secondary sale of shares of US$ 250 million in Advanta by UPL. Alpha Wave will make its investment from its Alpha Wave Ventures II fund, which invests in leading global businesses with a robust competitive advantage. 

Jai Shroff, Group CEO of UPL, said, “We are delighted to partner with Alpha Wave on Advanta, our global seeds platform, which has emerged as a leading player in sustainable agriculture solutions, enhancing the livelihood of farmers globally. The company operates under the principle of ‘farmer first’, ensuring that solutions are tailored to meet the specific needs of farmers based on Advanta’s proprietary germplasm bank and strategic crops."

Advanta is committed to promoting food security and sustainable agriculture and is making significant progress in developing climate-smart crops that are resilient to drought and salinity, the CEO added.

In a separate development, UPL announced its plans for a rights issue worth ₹3,377 crore. The company is planning to issue 9.38 crore shares. It has priced its issue at ₹360 per share at a 34% discount to its current market price of ₹547. So far in 2024, the stock of UPL has declined by 7%. Till October 2024, 17 companies have raised ₹17,728 crore.