Global investment firm picks up 12.5% in UPL subsidiary for $350 million

Mumbai: Global investment firm Alpha Wave Global has agreed to pick up a 12.5% stake in Advanta Enterprises Ltd, a subsidiary of agrochemicals maker UPL, for $350 million.

The deal, announced on Tuesday, includes a primary investment of $100 million by Alpha Wave and its purchase of UPL’s shares worth $250 million in Hyderabad-headquartered hybrid seeds company Advanta.

While proceeds from the primary investment will be used for Advanta’s growth through organic and inorganic initiatives, UPL will use the proceeds from the share sale to deleverage its balance sheet, UPL said in a statement. At the end of September, UPL had a net debt of $3.28 billion.


This is the second infusion of funds by a global investor in Advanta, after KKR invested $300 million in the company in October 2022.

“We are particularly excited to partner with Jai Shroff and his outstanding team, as well as KKR, and help add value in building the business in the years leading up to a potential IPO,” Navroz D Udwadia, partner at Alpha Wave Global, was quoted as saying in a press release.

Advanta, present in more than 80 countries, makes hybrid seeds, including that of corn, sorghum, sunflower, canola, rice and various vegetables. It has a leadership position for tropical yellow corn in India, Thailand and Latin America, and for sunflower and sorghum in Argentina.

“We believe that via a combination of organic growth driven by customised products sold into markets where Advanta has dominant positions, as well as tuck-in acquisitions, Advanta has an exciting path ahead of it in compounding the scale of the business,” Udwadia said.

JM Financial was the sole advisor for the transaction.

UPL reported a net loss of Rs 443 crore for the September quarter, widening from Rs 189 crore a year ago due to higher expenses.