The issue price of Rs 360 represents a discount of about 34% to UPL’s closing price of Rs 546.85 on November 19 on the BSE.
The company stated that the rights issue offers eligible shareholders one share for every eight fully paid-up shares held as of the record date, November 26.
The issue price includes a face value of Rs 2 and a premium of Rs 358, payable in installments—Rs 90 on application and Rs 270 in subsequent calls, according to the company’s filing.
The subscription period begins on December 5 and ends on December 17, with an on-market renunciation window from December 5 to December 11. The move aims to strengthen the company’s balance sheet and fund its strategic growth initiatives, as per the filing.
The company plans to use the proceeds to reduce debt levels, enhance liquidity, and pursue operational efficiencies. This initiative aligns with UPL’s broader goals of maintaining a competitive edge in the global agrochemical market, which has been grappling with rising raw material costs and geopolitical uncertainties.Also read | Fitch affirms Vedanta Resources at ‘B-‘ rating with positive outlook(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)