Agrochemical major UPL Ltd on June 15 said it has acquired a 100 percent stake in Punjab-based Kudos Chemie Ltd through its wholly-owned subsidiary, UPL Speciality Chemicals Ltd. Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has a manufacturing facility near Chandigarh.

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In a regulatory filing, USCL said it has acquired four crore equity shares of Rs 10 each of Kudos for a total consideration of Rs 40 crore.

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"UPL in the year 2020 had submitted a resolution plan to the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code for the revival of Kudos Chemie, which was recently approved by The National Company Law Tribunal, Chandigarh Bench, Chandigarh," the company said.

As per the resolution plan approved by NCLT, UPL Speciality Chemicals is required to invest Rs 237 crore in Kudos Chemie over a period of two years. With this acquisition, which has a synergy with its existing business, Kudos will help UPL offer various value-added products to its customers,

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UPL said Kudos did not carry out operations in the last more than five years, and in 2018, the Corporation Insolvency Resolution Process was initiated by a consortium of financial creditors.

After the acquisition, Kudos has become a step-down wholly-owned subsidiary of UPL Speciality Chemicals.

Shares of UPL ended at Rs 711.65, down by Rs 4.05, or 0.57 percent on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Jun 15, 2022 6:13 PM IST