Shares of agrochemical major UPL Ltd fell nearly 4 per cent today after the company announced merger of the group's seed firm Advanta with itself.
The stock lost 3.50 per cent to settle at Rs 441.95 on BSE. Intra-day, it slipped 4 per cent to Rs 439.50.
At NSE, shares of the company dipped by 3.75 per cent to Rs 441.95.
The scrip of Advanta, however, gained 0.50 per cent to Rs 478.55 on BSE.
UPL Ltd today announced merger of the group's seed firm Advanta with itself as part of its strategy to provide all agri-solutions through one single entity and enhance shareholder value.
Post merger, UPL's geographical reach would expand and result in cost savings of Rs 90 crore annually.
The Mumbai-based UPL, formerly known as United Phosphorous Ltd, holds 48.44 per cent in Advanta Ltd and the same would be cancelled after the merger.
"The board of directors of UPL Ltd and Advanta Ltd today unanimously approved Advanta's merger with UPL, subject to necessary approvals," UPL said in a regulatory filing.
As per the proposed amalgamation scheme, the shareholders of Advanta Ltd will get one share of UPL for each held in the seed company.
