UPL shares tank 13% on merger plans
UPL Ltd's stock fell sharply after the company revealed plans to merge its Indian and global crop protection businesses into a new entity, UPL Global Sustainable Agri Solutions Ltd.
Shares slid to ₹652.75, about 13% lower, as investors reacted to the major restructuring move.
UPL to split into 2 focused companies
This shake-up will split UPL into two focused companies: UPL Global, which will handle crop protection in more than 140 countries, and UPL Ltd, which will branch out into specialty chemicals and seeds.
The idea is to make both arms more agile and attractive for future investment.
Restructuring to be completed in 12-15 months
The restructuring is expected to begin after regulatory approvals and involves merging different business units across India and abroad.
Once done, the promoter group is expected to retain a majority stake of around two-thirds, while public shareholders would hold the remainder.
The whole process should wrap up in 12-15 months—pending regulatory green lights.