UPL shares drop 10% after restructuring announcement, Nuvama downgrades to ‘Hold’
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Shares of UPL Limited fell 10% to Rs 677 on Monday following the company’s announcement of a major restructuring and a downgrade by Nuvama Institutional Equities to ‘Hold’. UPL has unveiled a plan to merge its global crop protection operations, UPL SAS and UPL Corp, into a new, independently listed entity named UPL Global. The parent company, UPL Limited, will continue to oversee the formulation business, R&D, SUPERFORM and Advanta, acting as a holding company. The restructuring is intended to create a unified crop protection platform, unlocking potential synergies while remaining cash and tax neutral. Minority interests are safeguarded, and the company’s capital structure will remain unchanged, with no significant impact on existing leverage. In its report, Nuvama Institutional Equities highlighted that while the demerger could generate value by giving individual businesses standard industry valuations, leverage concerns remain. “Giv...