US-based private equity firm Alpha Wave Global will pick up a 12.5% stake in hybrid seeds company Advanta Enterprises Ltd for $350 million (Rs 2,950 crore), joining global investor KKR on the cap table.
Alpha Wave’s investment, which will be made from Alpha Wave Ventures II fund, will be done through a combination of $100 million in primary investment and the rest a secondary share purchase from the parent company UPL Ltd.
Alpha Wave’s fresh primary capital infusion of $100 million will help Advanta in its organic and inorganic growth.
The parent company UPL will sell 8.93% of its stake to Alpha Wave to “deleverage its balance sheet”, the company said in a notice to exchanges on Tuesday.
UPL also informed the exchanges that Alpha Wave’s fresh capital infusion into Advanta has been agreed at a valuation of $2.85 billion, while the private equity firm’s share purchase has been agreed at $2.70 billion.
JM Financial acted as the sole financial advisor to UPL and Advanta for this transaction.
“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,” co-founder and partner of Alpha Wave Global Navroz D. Udwadia said in an official statement.
Advanta is currently present in over 80 countries and is engaged in plant genetic research and development. It provides hybrid seeds such as grain sorghum, forages, corn, sunflower, canola, rice, and vegetables.
UPL Ltd, founded in 1969 and formerly known as United Phosphorous, manufactures and markets crop protection products, intermediates, specialty chemicals, and other industrial chemicals.
In 2023-24, UPL recorded a sharp drop in topline. Its net sales fell by a third to about Rs 5,400 crore compared.
Shares of UPL Ltd ended at Rs 546.85 on Tuesday, up 2% from the previous day’s close. The share market was closed on Wednesday.
