UPL Shares In Focus As Company Eyes Value Unlocking Through Key Restructuring Exercise
Decco is recognised globally for its innovative technologies that extend the safety, quality, and shelf life of fresh produce.
UPL Ltd. on Tuesday announced the transfer of its wholly owned subsidiary—Decco—to Advanta, in a move to streamline business.
The transaction was made at an enterprise value of $502 million and is part of UPL’s ongoing commitment to optimise its portfolio, as the company looks to capitalise on emerging opportunities in the agri-inputs sector.
The transaction was done with an implied valuation of 20–23x trailing EV/EBITDA multiple.
About Decco & What It Means For UPL
Decco is recognised globally for its innovative technologies that extend the safety, quality, and shelf life of fresh produce.
The company posted a revenue of Rs 930 crore in FY25 and a strong Ebitda margin in the range of 20-22%.
Decco has also established market leadership in the post-harvest solutions space. Its transfer to Advanta, therefore, is expected to drive portfolio realignment and enable Decco to scale further by leveraging Advanta’s global reach.
The transaction results in UPL’s shareholding in Advanta rising from 74.7% to 78.2%.
UPL's Broader Restructuring Plans
The transfer is a part of a broader internal restructuring that is being carried out at UPL in an attempt to re-align its operating structure for greater visibility and growth.
As per the company, the process is expected to conclude by Dec. 31, 2025, pending necessary shareholder approvals.
The move is widely viewed as a strategic step to sharpen UPL’s crop protection and sustainability focus, while empowering Advanta to strengthen its post-harvest and seed technology portfolio.
As per Bloomberg data, a total of 22 analysts cover UPL, with 15 giving out buy calls on the counter. Five analysts have given 'hold' calls, while two have held 'sell' calls.
The average of 12-month analysts' price targets implies a potential upside of 4.9%.
