UPL acquires Kudos Chemie Limited in terms of resolution plan approved by NCLT

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

The Company has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals Limited ("USCL") which has acquired 100% holding in Kudos.

Kudos did not carry out operations in last more than 5 years. Corporation Insolvency Resolution Process was initiated in 2018 against Kudos by consortium of financial creditors.

Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has manufacturing facility near Chandigarh.

As per the resolution plan approved by NCLT, the Company is required to invest Rs.237 crore in Kudos over a period of 2 years.

Kudos acquisition helps UPL to offer various valueadded products to its customers having synergy with its existing business.

Shares of UPL Limited was last trading in BSE at Rs. 711.65 as compared to the previous close of Rs. 715.70. The total number of shares traded during the day was 27473 in over 1953 trades.

The stock hit an intraday high of Rs. 723.40 and intraday low of 706.85. The net turnover during the day was Rs. 19611039.00.

Source : Equity Bulls

Keywords

UPL INE628A01036 UPLSpecialityChemicals StakeAcquisition Kudos CIRP