UPL Demerger: How many shares will shareholders receive following the demerger?

Synopsis: UPL shares are in focus after announcing a demerger that will create UPL Global Sustainable Agri Solutions Limited as a separate listed crop protection company. Investors will receive one share of the new entity for every one UPL share held, ensuring proportional ownership in both businesses.

The shares of this company, which is principally engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, speciality chemicals and the production and sale of field crops and vegetable seeds, are in focus after the demerger announcement. This article tells us about how many shares investors will receive after the demerger 

With a market cap of Rs 53,786 crore, the shares of UPL Ltd crashed 1.35% in today’s trading session and reached a low of Rs 635.90. When compared to its previous day’s closing price of Rs 644.65, the shares are trading at a PE of 28.4 compared to its industry PE of 28.7.

Share Entitlement for Investors

UPL Limited has approved a composite scheme of arrangement to consolidate its crop protection businesses under UPL Global Sustainable Agri Solutions Limited, while UPL Limited will continue as a diversified agriculture and specialty chemicals business. The proposed restructuring includes a merger, demerger, and cross-border amalgamation to form a dedicated global crop protection business, in addition to the existing diversified business.

For existing shareholders, the demerger is straightforward: for every 1 equity share of UPL Limited (with a face value of Rs 2), shareholders will receive 1 equity share of UPL Global Sustainable Agri Solutions Limited (with a face value of Rs 2).

Merger Share Ratios (Internal Restructuring)

As a part of the internal consolidation, 1,000 equity shares of UPL Limited (₹2 each) will be issued in exchange for every 48 equity shares of UPL Sustainable Agri Solutions Limited (₹10 each), and 1,000 equity shares of UPL Global Sustainable Agri Solutions Limited (₹2 each) will be issued in exchange for every 213 equity shares of UPL Crop Protection Holdings Limited (USD 1 each). These ratios are applicable to group companies and do not dilute or adversely impact public shareholders of UPL Limited.

Financially, the India Crop Protection Business that is being demerged contributed Rs 24,120 million in FY25, which is approximately 31.15% of the total turnover of UPL Limited, thus emphasising the size of the business that is being split off.

In summary, the restructuring exercise streamlines the corporate structure, improves strategic alignment, and allows both listed companies to have their own distinct capital allocation and growth plans independent of each other, while safeguarding the interests of investors via a 1:1 demerger ratio

Financials 

The revenue from operations for the company stood at Rs 12,269 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 10,907 crores, up by about 12 per cent YoY. However, the net profit stood at Rs 490 crore in Q3 FY26, down compared to the Rs 853 crore profit in Q3 FY25.

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