UPL makes the right moves with mega debt retirement plan

Healthy fundamentals and expectation of a strong second half of 2020-21 cheer investors

Shares of agrochemical major UPL rallied about three per cent on Wednesday after the company successfully redeemed $410 million worth of dollar-denominated bonds before their due date of October next year.

The move is in line with the company’s earlier commitment to reduce its overall debt and is seen addressing one of investors’ key concerns. The company is on track to meet its guidance of reducing overall debt by $700 million in the current financial year, say analysts. Last quarter, UPL said it had reduced its gross debt by Rs 770 crore (about $100 million).

“We expect UPL to generate