Advanta Enterprises, the seeds and post-harvest subsidiary of UPL, has postponed its initial public offering preparations because of unstable market conditions. The company intends to proceed with an investor roadshow once it observes improvements in stock market sentiment. India's market regulator, the Securities and Exchange Board of India, had already cleared Advanta's draft offer document for the IPO in early June.
UPL Ltd. and KKR & Co. plan to collectively sell a 10% equity stake in Advanta during the IPO. UPL, India's largest crop protection firm, currently holds approximately 78.2% of Advanta, with KKR owning 11.1% and Alpha Wave Ventures holding 10.7%. According to Advanta's draft red herring prospectus, UPL will sell 7.78% and KKR will sell 2.22% of their stakes.
Advanta aims to raise between $400 million and $450 million through the IPO, which would value the company at roughly $4 billion to $4.5 billion. This valuation is considerably higher than the $2.8 billion valuation in 2023 when Alpha Wave purchased 12.5% for $350 million. In February, UPL undertook a group-level reorganization to simplify its corporate structure, which included transferring its post-harvest business to Advanta, enhancing its global seeds portfolio.
Indian stock indexes have shown gains in July, supported by increased purchases from local financial institutions, despite ongoing market tension following a breakdown in a U.S.-Iran peace pact. However, Advanta, which operates in over 80 countries under brands like Advanta, Alta, and Pacific Seeds, has chosen to wait for more favorable market conditions before launching its public offering. Advanta declined to comment on the matter.
