Agro-chemicals major UPL plans share buyback of up to Rs 1,100 crore

Agro-chemicals major UPL Ltd on Wednesday announced a buyback of shares worth up to Rs 1,100 crore from shareholders, excluding promoters.

In a regulatory filing, the company said its board has approved the proposal to buy back fully paid-up equity shares of face value of Rs 2 each from shareholders (other than the promoters, the promoters group and persons in control of the company), for an aggregate amount not exceeding Rs 1,100 crore, the maximum buyback size.

The buyback of shares will be at a price not exceeding Rs 875 per equity share through the open market route.

The company's shares closed at Rs 689.10 at BSE on Wednesday, up 3.52 per cent.

"Subject to the market price of the equity Shares being equal to or less than the maximum buyback price, the indicative maximum number of equity shares bought back would be 1,25,71,428 equity Shares, comprising approximately 1.65 per cent of the paid-up share capital of the company as of 2nd March, 2022 (on a standalone basis)," the filing said.

If the equity shares are bought back at a price below the maximum buyback price, the actual number of shares bought back could be more.

The company would utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback, that is Rs 550 crore (minimum buyback size).

Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 62,85,714 shares.

The proposed buyback is subject to approval of the members of the company by way of a special resolution and all other applicable statutory/ regulatory approvals, it added.

The company's promoters hold 28.24 per cent stake as on February 25.

Recently, UPL reported 24.89 per cent growth in consolidated net profit at Rs 1,179 crore for the December quarter of 2021-22. The company's profit stood at Rs 944 crore in the year-ago period.

Revenue from operations grew 23.78 per cent during the quarter under review at Rs 11,297 crore, compared to Rs 9,126 crore in the same period of 2020-21.