UPL acquires Kudos Chemie in terms of resolution plan approved by NCLT; Stock under pressure

16 Jun 2022 , 10:50 AM

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, as per the filing.

Further, the Company has incorporated a wholly owned subsidiary in the name of UPL Speciality Chemicals Limited (“USCL”) which has acquired 100% holding in Kudos. According to the filing, 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.

At around 10:54 AM, UPL was trading at Rs710.40 per share down by Rs1.25 or 0.18% from its previous closing of Rs711.65 per share on the BSE.