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. As per the resolution plan, UPL Limited would acquire entire holding of Kudos.

A deal

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

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’), the Company has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals Limited (USCL) which has acquired 100% holding in Kudos.

USCL is promoted by UPL Limited (the ‘Company’) as a wholly owned subsidiary and accordingly Kudos becomes a step down wholly owned subsidiary of the Company. Both become related parties of the Company on account of this investment.

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. USCL acquired 4 crore equity shares of Rs.10/- each of Kudos for total consideration of Rs.40 crore.

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

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