UPL, through its wholly owned subsidiary UPL Speciality Chemicals (USCL), acquired 100% stake in Kudos Chemie for 40 crore.
UPL incorporated a wholly owned subsidiary, UPL Speciality Chemicals ("USCL"), which acquired 100% holding in Kudos.Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has manufacturing facility near Chandigarh. It did not carry out operations in over 5 years. Corporation Insolvency Resolution Process was initiated in 2018 against Kudos by consortium of financial creditors.
In 2020, UPL submitted a resolution plan to National Company Law Tribunal ("NCLT") under Insolvency and Bankruptcy Code for revival of Kudos Chemie, which was recently approved by The National Company Law Tribunal, Chandigarh Bench, Chandigarh.
As per the resolution plan, UPL acquired 4 crore equity shares of Rs 10 each of Kudos for total consideration of Rs 40 crore. UPL is required to invest Rs 237 crore in Kudos over a period of 2 years.
The acquisition will help UPL to offer various value-added products to its customers having synergy with its existing business.
UPL is a global provider of sustainable agriculture products & solutions. Through OpenAg, UPL is focused on facilitating progress for the entire agricultural value chain. It reported a 29.7% rise in consolidated net profit to Rs 1,379 crore on a 23.9% increase in net sales to Rs 15,861 crore in Q4 FY22 over Q4 FY21.
Shares of UPL were down 1.48% to Rs 701.15 on the BSE.
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