Fitch to retain UPL rating post-reorganisation

Fitch Ratings has maintained the credit rating of UPL Corporation at ‘BB/Stable’ after the proposed group reorganisation. It will not lead to any change in its creditworthiness or consolidated rating framework, it said.

In its note on Friday, Fitch said that the new corporate structure preserves cash fungibility, majority control and common governance, along with oversight over related-party transactions, and continued upstream guarantees from UPL Cayman to UPL Corp.

The reorganisation transfers UPL’s Indian and global crop protection businesses to a new listed entity, UPL Global Sustainable Agrisolutions through share swap. UPL is expected to retain a majority stake of around two-thirds post-reorganisation.

The rating agency while laying down its expectation for the company said, “We expect UPL to maintain cash fungibility across the group and continue managing the group’s treasury, corporate strategy, capital allocation, and governance policies, after the reorganisation. This will be supported by its continued majority ownership, common board members with UPL GSAL and ongoing arm’s length related-party transactions, like working capital and inter-company loans, needed to fund UPL’s globally diversified operations.”

UPL’s board on Friday had approved a group reorganisation aimed at creating a global pure-play crop protection platform under a separate listed entity and unlocking shareholder value through structural simplification.

The restructuring aligns with UPL’s strategy of creating focused verticals, similar to prior initiatives like Superform Chemistries and Advanta seeds business plans. The reorganisation will create world’s second largest listed Pure-Play Crop Protection Platform.

The transaction is expected to be completed in 12–15 months, subject to approvals from statutory and regulatory authorities. Post the restructuring, promoters will hold 33.09 per cent in UPL and public shareholders 66.91 per cent. In UPL GSAL, promoters will hold 71.6 per cent while public shareholders will be 28.4 per cent.

Published on February 21, 2026