UPL To Raise Rs 3,378 Crore Via Rights Issue

UPL Ltd. has announced plans to raise up to Rs 3,378 crore through a rights issue. The company’s Rights Issue Committee, in a meeting held on Wednesday, approved the issuance of 9.38 crore equity shares on a partly paid-up basis. The shares will be offered at a price of Rs 360 per fully paid-up share.

The rights issue will be available to existing shareholders of UPL, with an entitlement ratio of one rights equity share for every eight fully paid-up shares held on the record date, which is set for Nov. 26, 2024.

The rights issue is scheduled to open on Dec. 5, 2024, and will close on Dec. 17, 2024. The company has also outlined an on-market renunciation period from Dec. 5 to Dec. 11, 2024, during which shareholders can transfer their rights.

The issue will raise funds for the company to strengthen its balance sheet and potentially fund strategic growth initiatives. UPL has made arrangements with National Securities Depository Ltd. and Central Depository Services Ltd. to credit the rights entitlements to shareholders' demat accounts ahead of the opening date. The move aims to enhance UPL's financial flexibility while offering an attractive opportunity for its shareholders to increase their stake in the company.

The fully paid-up price of Rs 360 per share represents a premium of Rs 358 over the face value of Rs 2 per share, with the payment to be made in two stages. Shareholders will pay Rs 90 on application, with the balance payable in subsequent calls as determined by the company. If fully subscribed, the issue will increase UPL’s total number of equity shares from 75.06 crore to 84.44 crore.