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.