UPL Rights Issue: UPL will soon file a DRHP to raise up to $500 million.

MUMBAI: Pesticide major UPL Ltd on Monday said it would soon submit to DRHP to raise up to $500 million (Rs 4,200 crore) through rights issue. UPL Ltd CFO Anand Vora said at a media briefing during the Q4 earnings call here that the company has already obtained board approval on the matter and it could be launched in the market early in the third quarter of this fiscal.

“We expect the rights issue to hit the market around the end of the second quarter or beginning of the third quarter,” Vora said.

He said the company’s board has already approved raising up to Rs 500 crore and up to Rs 4,200 crore, adding that depending on the price and other things, “we will take a decision (on the exact size).” (rights issues) will become more of an issue at some point.”

He said the company has been asked by market regulator SEBI to go through the normal route, which would take around 90 to 135 days for the matter to hit the market. “We will soon be submitting a DRHP on the same issue,” Vora said.

Vora also said the company had planned Capex of $210 million for capacity expansion and seed and crop protection businesses, among others. “We have prioritized Capex and are targeting an expenditure of around $210 million (approximately Rs 17,000-18,000 crore).” According to him, the company had budgeted Rs 4,000 crore for FY23 but ended up spending around Rs 2,000 crore. Of that $210 million, about $80 million would go toward adding tangible assets, or capacity, he said.

The investment will also be used for seed, crop protection, and specialty chemical businesses, and the balance will be incorporated as intangible assets for product registration.