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UPL Limited Sells Stake in Advanta Enterprises to Alpha Wave Ventures

UPL Limited has announced the partial divestment of its stake in Advanta Enterprises Limited (AEL), a subsidiary specializing in the seed business. Currently, UPL holds an 86.67% stake in AEL, with KKR owning the remaining 13.33%.

Transaction Details:

  • UPL’s board has approved the sale of an 8.93% stake in AEL to Alpha Wave Ventures II, LP (“Alpha Wave”), a private equity investor, for USD 250 million. This values AEL at USD 2.70 billion.
  • AEL will also raise USD 100 million through a fresh equity issuance to Alpha Wave, at a post-money valuation of approximately USD 2.85 billion, granting Alpha Wave an additional 3.51% stake.

Post-Transaction Shareholding in AEL:

  • UPL Limited: 74.70%
  • KKR: 12.86%
  • Alpha Wave: 12.44%

These transactions are subject to regulatory clearances, including approval from the Competition Commission of India (CCI).

About Advanta Enterprises Limited (AEL):
For the fiscal year ending March 31, 2024, AEL reported:

  • Revenue: INR 4,148 crores (9.62% of UPL’s consolidated financials).
  • Net Worth: INR 3,938 crores (15.87% of UPL’s consolidated financials).

About Alpha Wave Ventures:
Alpha Wave is a global investment firm specializing in growth-stage companies through its flagship private equity fund. It is not part of UPL’s promoter group or related entities, and this transaction does not constitute a related party transaction.

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