UPL to Raise USD 500 Million via Rights Issue

Mumbai, May 13 (PTI) Agrochemicals major UPL Ltd on Monday said it will file DRHP shortly for raising up to USD 500-million (Rs 4200 crore) via the Rights Issue.

The company has already secured its board's approval for the issue, which may hit the market by early third quarter of this fiscal, UPL Ltd CFO Anand Vora said at the company's post-Q4 earnings announcement media briefing here.

"We expect to hit the market with the Rights Issue sometime by the end of Q2 or beginning, Q3," Vora said.

He said that the company's board has already given its approval for raising up to 500 million, which is up to Rs 4200 crore and added that depending upon where the price and other things, "we will take a decision (on the exact size of the Rights Issue) sometime closer to the Issue".

He said that the company has been asked by market regulator SEBI to go through the normal route, which takes about 90 to 135 days before hitting the market with the Issue. "We will shortly file DRHP for the same," Vora stated.

Vora also said that the company has lined up a Capex to the tune of USD 210 million for capacity expansion and as well as for seed and crop protection businesses, among others.

"We have prioritised a Capex and we are targeting a spend of just around USD 210 million (about Rs 17000-18000 crore)."

According to him, the company had budgeted for Rs 4,000 crore for FY23 but ended up spending just around 2,000 crore.

Out of this USD 210 million, roughly about 80 million is towards the addition of tangible assets, which is capacity, he said.

The Capex will also be utilised in the seed, and crop protection business, as well as specialty chemicals business, adding that the balance is in intangible assets, which is for product registration.