UPL shares in focus today as firm to raise Rs 4,200 cr via rights issue

Shares of pesticides maker UPL Ltd are in focus today after the firm said its board has approved a proposal to raise Rs 4,200 crore via rights issue. UPL stock ended 0.66% ended higher at Rs 581.70 on Friday. Total 0.84 lakh shares of UPL changed hands amounting to a turnover of Rs 4.87 crore. Market cap of UPL rose to Rs 44,444.52 crore on BSE. UPL shares have a one-year beta of 0.3, indicating very low volatility during the period.

“The Board of Directors of the Company at its meeting held today, that is, on Friday, December 22, 2023, inter alia, approved the proposal for fund raising for an amount aggregating up to Rs 4,200 crore subject to receipt of statutory/regulatory approval,” said UPL in a communication to bourses.

UPL stock ended 0.66% ended higher at Rs 581.70 on Friday. Total 0.84 lakh shares of UPL changed hands amounting to a turnover of Rs 4.87 crore. Market cap of UPL rose to Rs 44,444.52 crore on BSE. UPL shares have a one-year beta of 0.3, indicating very low volatility during the period.

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In terms of technicals, the relative strength index (RSI) of UPL stands at 49, signaling it's trading neither in the overbought nor in the oversold zone. UPL shares are trading lower than the 5 day, 10 day, 20 day, 100 day, 150 day, 200 day but higher than the 30 day and 50 day moving averages.

The stock has lost 20.25% in a year and fallen 19.41% since the beginning of his year. In a rights issue, money is raised from existing shareholders by issuing fresh shares.

“For the purposes of giving effect to the rights issue, the detailed terms to the rights issue including but not limited to the issue price, rights entitlement ratio, record date, timing and terms of payment will be determined in due course by the Board or duly constituted committee of the Board, in accordance with applicable laws, subject to receipt of necessary approvals, as may be required,” the company said.

UPL is principally engaged in the agro business of production and sale of agrochemicals, field crops, vegetable seeds and non agro business of production and sale of industrial chemicals, chemical intermediates, speciality chemicals.