UPL's debt reduction plan likely to fall short of target; stock rises

The UPL stock gained 17 per cent, spurred by a stellar show in its core markets of India and Latin America (Latam). Its proposal to cut debt, coupled with further synergy gains from the Arysta acquisition, contributed to the rise.

UPL is planning to raise funds to refinance $550 million (Rs 4,000 crore) of debt. Net debt at the end of the December quarter stood at Rs 29,654 crore.

Moody’s views the proposed issuance as credit positive for the company, given it will help achieve its debt reduction target by March 2020, and reduce leverage (net debt to operating profit)