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UPL will sell 7.78% and KKR 2.22% in the IPO, according to Advanta’s draft red herring prospectus.
Advanta Enterprises, the seeds and post-harvest subsidiary of crop protection giant UPL, has delayed preparation for its proposed initial public offering on choppy market conditions, according to people familiar with the matter.
The firm plans to proceed with an investor roadshow, when it perceives further improvements in stock market sentiment, the people said. Market regulator Securities and Exchange Board of India cleared Advanta’s draft offer document for the IPO in early June.
Advanta declined to comment on the matter.
To be sure, Indian stock indexes are holding gains so far in July, even as the market pulse remains on the edge, following the breakdown of a U.S. – Iran interim peace pact signed at Versailles, France last month. Support from local financial institutions, who have stepped up purchases of local shares, underpins the net increase in stock prices this month.
UPL Ltd. and KKR & Co. plan to offer a total of 10% equity stakes in Advanta for sale in the maiden equity sale to the public. UPL, India’s largest crop protection firm, owns an about 78.2% equity stake, KKR 11.1%, and Alpha Wave Ventures 10.7% in Advanta.
UPL will sell 7.78% and KKR 2.22% in the IPO, according to Advanta’s draft red herring prospectus.
The United States is launching airstrikes on Iranian targets since July 8, as President Donald Trump vows to intensify the U.S. offensive, until Iran halted its alleged attacks on shipping passing through the Strait of Hormuz.
Advanta plans to raise about $400 million to $450 million through the IPO, the people said, This pegs the company's valuation around $4 billion to $4.5 billion, they added. In February, UPL unveiled a group level reorganization of its businesses, aiming to simplify its corporate structure. The restructuring included transfer of the post-harvest business to Advanta, adding to its global seeds portfolio.
Anurag Joshi heads the Mumbai reporting team at ET NOW. He leads the news coverage of some conglomerates, debt and equity capital markets, private equity, and M&As. He has over 20 years of experience as a financial journalist, formerly having worked at Bloomberg LP, Reuters, and The Economic Times.
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