Shares of UPL fell 15 percent to 416 rupees on the BSE in intraday trading on Thursday, in large volumes, following a media report saying whistleblowers claimed the company’s promoters diverted money.
Clarifying the news report, UPL has said that the company believes there is a sustained campaign to smear its image and the group and it is important that the correct image is presented to all its stakeholders, as the news report appears to create an unseemly controversy. . on corporate governance at UPL.
UPL denies that the whistleblower is a board member, as reported in the news article, as these allegations were discussed and investigated by the Audit Committee and the Board in 2017/2018, the company said.
UPL also said that it believes and ensures that all corporate governance standards and applicable laws have been duly complied with. UPL will evaluate all possible legal options available with her to defend its position and image, he said. CLICK HERE TO GET THE COMPLETE REPORT.
As of 1:54 p.m., UPL was trading 13 percent lower at Rs 428 on the BSE, compared with a 0.71 percent drop on the S&P BSE Sensex. A total of 70.6 million shares representing 10 percent of UPL’s total capital changed hands to NSE and BSE.
Meanwhile, in December, UPL outperformed the market by gaining 18 percent, compared with a 4 percent rise on the S&P BSE Sensex through Wednesday. Between November 17 and November 25, 2020, Uniphos Enterprises, the promoter group company, had purchased 179,475 shares of UPL through purchases on the open market, according to the disclosure made by the company to the stock exchanges. After the transaction, Uniphos Enterprises’ stake in UPL increased to 5.108 percent from 5.085 percent previously.
UPL is one of the top five agricultural solutions companies in the world, with a portfolio consisting of biologics and traditional crop protection solutions with more than 13,600 registrations.
The company has maintained its guidance of 6 to 8 percent growth in revenue and 10 to 12 percent in EBITDA (earnings before interest, taxes, depreciation and amortization) for the 2020-21 financial year (FY21) . Growth, UPL said, will be driven by a focus on differentiated solutions, as well as new product launches. Price increases in local currencies and cost savings will support margins, UPL said in announcing September quarter results on October 30.
As of September 30, 2020, UPL’s net debt stood at Rs 23,841 million, higher by Rs 1,781 million compared to March 31, 2020, primarily due to an increase in working capital of Rs 2,915 million. rupees, in line with business seasonality. Reports suggest that management maintained its commitment to reduce net debt in the second half and maintain an investment grade credit rating.
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