In the December quarter, UPL’s promoters purchased a 2.29% stake on the open market in a series of bulk transactions. As a result, for the first time in five years, their stake in the company surpassed 30%. According to trading data on promoters and insiders, two promoter entities, Harmonic Ventures and Suresight Ventures, purchased nearly 6.7 million shares on the open market. The promoter’s stake in UPL has risen from 27.96% in September 2021 to 30.74% in December 2022.
While the company stated that it had realigned its strategy to unlock value for shareholders, analysts stated that the company’s strategy to move up the value chain by increasing the share of sustainable and differentiated products, as well as its backward integration initiatives and farmer connect, had produced positive results.
“UPL also recently announced strategic corporate realignment initiatives, including the creation of distinct pure-play platforms to accelerate growth and unlock shareholder value.” During the September 2022 quarter results, management addressed concerns about high debt by reinforcing the $500 million net debt reduction target, bringing the total net debt to $2 billion by the end of FY23.
UPL recently announced a business realignment into four platforms: India Agtech, Global Crop Protection, Global Seeds, and Manufacturing and Specialty Chemicals. As part of this initiative, prominent investors such as Abu Dhabi Investment Authority, Brookfield, KKR, and TPG have collectively invested around 4,000 crore in India Agtech and Global Seeds Business Platforms for minority stakes.